Made loss on rental property, do I still do a tax return?

Sheep Shagger

Will try Revenue tomorrow but thought someone here might know

Am a PAYE earner, was filling out a form 12 as have one rental property, made a small loss ..does this mean I don't have to fill out a tax return/form 12??

Mr. Incognito

Yes- you are oblidged to account for it but if it is a loss there will be no penalties if you file late

Sheep Shagger

Thanks for the quick response - much appreciated.

Have spent the afternoon doing the tax return, seems I might actually make a small 'profit' after all (not a small loss as per the original post).

I need to somehow wrap this all up with some health insurance and AVC contributions to claim against, how do you recommend I put these altogether for submitting to Revenue? In addition to a completed form 12 do I just include a spreadsheet with my calculations (the net result should be a small refund), presumably if i've made a mistake they will send me the refund for the correct amount (and hopefully not a bill!)

Am doing it by paper as was told by Revenue to stay away from ROS as tax bill will be under 3k - would much prefer to do it online.

PS: Really wish i'd filed by 31/8 so they would calculate for me - will know for next year!

troops

Sheep Shagger wrote: »

Thanks for the quick response - much appreciated.

Have spent the afternoon doing the tax return, seems I might actually make a small 'profit' after all (not a small loss as per the original post).

I need to somehow wrap this all up with some health insurance and AVC contributions to claim against, how do you recommend I put these altogether for submitting to Revenue? In addition to a completed form 12 do I just include a spreadsheet with my calculations (the net result should be a small refund), presumably if i've made a mistake they will send me the refund for the correct amount (and hopefully not a bill!)

Am doing it by paper as was told by Revenue to stay away from ROS as tax bill will be under 3k - would much prefer to do it online.

PS: Really wish i'd filed by 31/8 so they would calculate for me - will know for next year!

afaik u just send in the form 12 with nothing extra (maybe a med1 form for health expenses)...why would u be expecting a refund if u made a profit?

Sheep Shagger

troops wrote: »

afaik u just send in the form 12 with nothing extra (maybe a med1 form for health expenses)...why would u be expecting a refund if u made a profit?

Thanks.

Sorry, should have been a bit clearer, think I could be due a smallish refund as have stuff to claim for that exceed the tax liability I calculated on the rental income.

spark_78

I'm confused by this. I own one property which I rent out (I rent another property elsewhere). I rent my apartment at a loss (i.e. rent received is ~ €100 less than monthly mortgage repayments, and I pay management fees on top of this). I've signed up with an accountant and after he's gone through all my details for 2010, my tax bill is just over €1.5k for the year. I am a PAYE worker and this is my first year filing a return (as I only started renting in March 2010).

maddragon

Be careful Spark. Just because the rent is less than the mortgage does not mean you have no tax liability. Only the mortgage interest is tax deductible.

spark_78

That's what I thought. I've talked to quite a few people who seem to think that if rent is less than mortgage, then no tax liability. Maybe I misunderstood "loss" at the top of this thread.

My accountant tells me I owe Revenue so I'm all set to pay up what he's calculated.

Citizenpain

Yeah, only 75% of the interest is allowed against income and only that if you are registered with PRTB

george507

Loss is great for tax, as it can off-set your profit in following years

Mr. Incognito

Be careful- rental losses are confined to only be offset against rental gains and no other income.