Form 12 V Form 11e

Fiona

Hi all

I have a rental property that I have rented out since 2009, I have never made any tax returns on it. The property is rented out via the RAS scheme and I have it registered with the PRTB.

I don't make any profit on it, the rent does not cover the mortgage and I have to pay €300 out of my own wages every month cover the rest of the mortgage and to put away money for the service charge bill.

I am now in the middle of trying to get all my financial affairs relating to the apt in order and I have enlisted the help of an accountant as I am totally clueless about all this stuff.

I do have two forms here one of which I found on the internet and one which was posted to me from the revenue, one is a Form 12 - tax return for the year 2009 and the other is a Form 11E pay and file income tax return for the year 2010.

My questions are:

What are the difference between the two forms?

What form should I actually be completing for each year?

As it's 2012 now when should I expect the revenue to post me out one for 2011 or will I just print out the correct one now myself.

Lastly as this is a loss making asset and I have never profited from it at all could I be looking at a tax bill

I never thought I had any liability as I was not making an income that made me a profit but a friend of mine seems to think I do.

EDIT - never bought this property as a buy to let it was my home for 2 years before I rented it out due to not being able to sell it and getting married moving in with partner etc.

gerrybbadd

mrs crilly wrote: »

Hi all

I have a rental property that I have rented out since 2009, I have never made any tax returns on it. The property is rented out via the RAS scheme and I have it registered with the PRTB.

I don't make any profit on it, the rent does not cover the mortgage and I have to pay €300 out of my own wages every month cover the rest of the mortgage and to put away money for the service charge bill.

I am now in the middle of trying to get all my financial affairs relating to the apt in order and I have enlisted the help of an accountant as I am totally clueless about all this stuff.

I do have two forms here one of which I found on the internet and one which was posted to me from the revenue, one is a Form 12 - tax return for the year 2009 and the other is a Form 11E pay and file income tax return for the year 2010.

My questions are:

What are the difference between the two forms?

What form should I actually be completing for each year?

As it's 2012 now when should I expect the revenue to post me out one for 2011 or will I just print out the correct one now myself.

Lastly as this is a loss making asset and I have never profited from it at all could I be looking at a tax bill

I never thought I had any liability as I was not making an income that made me a profit but a friend of mine seems to think I do.

EDIT - never bought this property as a buy to let it was my home for 2 years before I rented it out due to not being able to sell it and getting married moving in with partner etc.

Which Form did Revenue post you?

Generally, of your non PAYE income is under €3175, you'd complete the Form 12, and a Form 11 if over that amount.

You shouldn't have a tax bill if your making a loss on the rental property. Just be aware, you cannot use your Mortgage payments to arrive at a loss. You can however, deduct 75% of the Mortgage Interest per year as an expense, given that you are registered with the PRTB.

Fiona

The E11 form was the one that was posted to me.

My rental income from the apt will be different as part of the time it was rented out the payment from the council was €650 per month but it was reduced down to €600 per month within the last year so based on that the yearly figure has never exceeded €7200.

gerrybbadd

If Revenue sent you a Form 11e, it might be best to complete that. Do you recall registering as a self assessed taxpayer at any time?

Fiona

The only tax thing I had to do was get a tax clearance cert? I thought that was just to prove I wasn't a criminal or something like that

(I am in full time work)

gerrybbadd

A Tax Clearance Cert just proves that your tax compliant (don't owe anything!)

So, if your income is below the €3175 (after expenses), you'd be ok to fill in a Form 12 (given that you havn't registered as self assessed)

Fiona

Thanks Gerry, i'm pretty thick when it comes to this stuff!

I have just spent the day preparing 3 files for the last 3 years to hand over to my friend who is accountant who is going to go though all this with me, just wanted to get as much completed on my own as I could