Rental income while overseas

d.pop

Hi guys, this probably done to death but I can't find a specific thread that covers it, wrong search parameters perhaps...?
Like many I've had to move overseas for work (Australia), and have had to rent out my home in Ireland, (started renting 12 months ago). As I understand it, I should be paying tax on the rental income as a percentage deduction from interest or similar such..?
Rent is covering approx 80% of total monthly payments to bank.
Am fine with that and am paying all other charges such as new house tax etc online.
Does anybody know if I declare my rental income in Oz and pay tax there does it clear me with the Irish tax office?
Would like of course to pay the minimum tax but at end if day if declaring it in Oz is easier and legal I would be prepared to take the hit, am already paying ridiculous tax here might as well be hung for sheep as a lamb! I like the thought of keeping it all under one roof so to speak and not trying to keep 2 tax offices happy!
Will be gone from Ireland for 2 years in march so I'm thinking I'm not resident for tax purposes per se then?
Any advice appreciated, will not be returning to ireland for prob 3-5 years, until construction picks up again, and don't want to return and discover i owe 10,000's in tax!
Aside: Aussie tax people are none too sure what the story is, tax return people here typically not accountants but rather do a course specific to Aussie tax returns and just type in your details into online system to calc your tax. As they only charge a flat $100 fee anything out of ordinary gets put in the "too hard box".
Thanks in advance for any feedback or directions elsewhere.

Legend100

Hi d.pop

i will try and help you but will keep it vague as don't want to get a ban for specific advice

the irish rental income is taxable in Ireland and payable in Ireland, you will get a % deduction for interest on your mortgage but you need to register with the PRTB to be able to make this claim. Certain other expenses may also be available. There are a couple of property issues in relation to tax but you would need to speak to a professional on this as it is specifically not allowed on here.

As i'm in Oz myself, I can help you a bit on that side, what visa are you on?
have you PR/citizenship? - if you are on a 417 or 457, there is a nice allowance in Australian tax law that exempts foreign earnings entirely within the charge to Australian tax (you don't want to have to declare it over here and go looking to the tax treaty for relief from double tax if it can simply be avoided - which it can by the allowance above)

With regards to irish tax, there is quite a bit of info about rental income in the stickies. Your situation is actually not that complex and most accountants/tax advisers at home in Ireland would not charge much for your irish return. Your aussie return will simply be your employment income (if you are an employee and dont have an ABN) plus any other australian sourced income most likely interest from a deposit account.

Hope that helps a bit!

d.pop

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Thanks Legend, much appreciated.

Am a PR in Oz so I guess that rules out that allowance.
Kind of guessed that I would have to do something at home but was hoping against, just such a pain doing it all from so far away! Will be home in July and will get ball rolling.
Regards.

Legend100

as you are PR, the income is assessable in Oz also

You will need to check the tax treaty to see who has primary taxing rights (I'm a bit busy at work to do it for you ) but normally it is the country where the property is located so you pay tax in ireland and claim a deduction for the irish tax paid in your aussie return (it's not quite as simple as that - just giving basic description)

You would prob be better off getting an aussie accountant also to do your australian return for you given you are PR

d.pop

Thanks again, going to track down our old accountant back home and get cracking.
Used HR block last July to file Aussie return but will be looking for local accountant this year. Nothing wrong with HR but felt they were just inputting figures, think an accountant might be more beneficial as I'm struggling to get my head around tax system here, actual paying of tax not too complicated (taxman always makes that aspect easy!), but need advice on how to minimize while not getting into trouble!
Enjoying the heat? Stinking hot in WA! Off to beach, taxman will have to wait...
Cheers.