Never made tax return for Rental Property

Nelbell

I jointly own a property with my friend for the past 5 years. We have never made a tax return on it because we assumed that because we only rent it to students for 9 months of the year, the tax would probably balance out. It is vacant for the summer months and ends up costing us thousands on mortgage repayments without any rental income.
Where do we stand on this? I want to sort out all my tax affairs cos I know that 'assuming' is not the way forward!
Any advice would be much appreciated

Bobby1984

Mortgage repayments are not taken into account when calculating the tax payable on the rental income so therefore you were probably making large taxable profits. However the interest on the mortgage is an allowable deduction if registered with the PRTB so if the annual interest is greater than the income then there would be no tax to pay.

I would make a return for current year rental income which is due by the 31st October in order to make sure that you are not late for another year. This deadline is extended until 16th November if you file online. As for the past years you could make a voluntary disclosure to the Revenue and file returns for the past five years. This may however mean that you will be charged interest and penalties.

If you are going to file a return (which your friend should also be doing) bring details of rental income, expenses, loan interest certs, confirmation of registration with PRTB along with details of other income to a good accountant.

Nelbell

Thanks for the advice. We haven't registered with the PRTB either. It's all starting to sound like a big fat mess!

Snap Happy

Bobby1984 wrote: »

I would make a return for current year rental income which is due by the 31st October in order to make sure that you are not late for another year. This deadline is extended until 16th November if you file online.

Do you do this trough ROS?

How do you apply if you don't have a reg number? https://www.ros.ie/acl/apply_ran/step1?language=en&country=IE#


Or have I missed the right link totally?

Mr. Incognito

If you have not declared rental income or made tax returns you are in breach of Revenue law.

All landlords are also oblidged to register with the PRTB.

Go to competent professional for advice immediately.

Thread closed.

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