Rental Income tax

Johannson14

Hi All,

Hoping that someone can help me out on this. How do I go about paying tax on rental income? I inherited a small house last year and decided to rent it out. I have since moved North of the border for work but need to work out what tax i owe the Revenue for the rent I received.

Any help would be greatly appreciated.
Thanks

Geuze

Fill in a Form 12.

Search www.revenue.ie for the Form 12.

Also search for info on being a landlord.

tapper

I also have a similar situation except there are 3 of us that own the property. Is the tax calculated and paid at the end of the year in a lump sum?

kennyb3

Geuze wrote: »

Fill in a Form 12.

Search www.revenue.ie for the Form 12.

Also search for info on being a landlord.

Just to be clear its a form 11 if the rental surplus is above €3,174.

My advice to the, given you don't know what form to use, let alone what reliefs are allowed etc would be to get in contact with an accountant.

Skippy27

Hi,

I rent an apartment in Dublin and pay rent myself down in cork. the rent I get doesn't cover my mortgage. last year I registered with the residential tenancy board and also paid €200 for the year to the council for non principal private residence, completed form 11 last week and got a letter today from revenue and I owe them €2550 based on rental income!!!!! couldn't believe it - thought u didn't pay tax on rents received under €10,000? anyone know if u don't register with prtb or pay nppr do they come after u?

thanks

Legend100

the 10K is a relief where you rent a room in the house you live in as opposed to rental income from an investment property

you will be liable to income tax on the rental profits

Don't forget to claim 75% of the interest on the mortgage against your rental income.......assuming you are not claiming the mortgage interest relief on the property!!!

you asked about whether they will come after you by not registering with the PRTB, we have a self assessment basis so all tax is collected on each person's honesty but you are risking revenue audit by not declaring

Skippy27

Legend100 wrote: »

the 10K is a relief where you rent a room in the house you live in as opposed to rental income from and investment property

you will be liable to income tax on the rental profits

Don't forget to claim 75% of the interest on the mortgage against your rental income.......assuming you are not claiming the mortgage interest relief on the property!!!

cheers, yeah I get mortgage interest relief. wouldn't mind paying the tax to revenue if I was making money on renting it but as I said the monthly rent doesn't even cover monthly mortgage! don't know how they came up with that figure I owe them! and I can't claim rent relief for the rent I pay myself...... buying that place was massive mistake!

Legend100

did you only just move into your rented property becoz if you didnt, you should be able to claim a rent tax credit for 2010 and three years back

Skippy27

Legend100 wrote: »

did you only just move into your rented property becoz if you didnt, you should be able to claim a rent tax credit for 2010 and three years back

yeah just couple of weeks ago, I'll look into that! cheers!

kennyb3

If you dont register with the PRTB, you might not get the 75% mortgage interest relief - so its a fairly big deal i.e. register. (I ve seen Revenue catch people on this a few times)

If you dont pay the nppr charge you ll get surcharged.

The fact that the rent you receive doesnt cover your mortgage has nothing to do with it. The repayments are made up of capital and interest. The capital is not allowed an since 7 April 2009 only 75% of the interest is allowed.

On the other side you will get a credit for any rent you pay yourself. This was at 20% subject to a 400 credit max for 2010.

seco

Based on information received following a client's revenue audit, Revenue systems are linked into PRTB database, so if a person has a rental property on which there is a mortgage and the loan interest is being claimed as a tax deduction against rental income and property is not PRTB registered, no interest relief will be granted and it will flag itself on Revenue systems with a revenue audit likely to follow with possible penalty implications.

kennyb3

seco wrote: »

Based on information received following a client's revenue audit, Revenue systems are linked into PRTB database, so if a person has a rental property on which there is a mortgage and the loan interest is being claimed as a tax deduction against rental income and property is not PRTB registered, no interest relief will be granted and it will flag itself on Revenue systems with a revenue audit likely to follow with possible penalty implications.

Agreed, we had one too for a client despite numerous letters to the client re same they never paid the fee and were audited and disallowed the interest. Surprise surprise they ve registered now