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prsi on rental income

  • 27-10-2014 12:53pm
    #1
    Pandoras Twist
    Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭


    Hi All,

    Quick question. Currently filling out a form 11 and wanted to check something in relation to the self assesment section.

    Spouse earns c. 8k from rental income and has no other income. Am I correct in understanding that she would be in class S and therefore all income is taxable at 4%?

    Also as this is only equal to 330 am I correct in thinking that this will need to be increased to 500 as that is the minimum payment?

    Even if the other spouse has been paying prsi on their employment income through their employer?


Comments

  • #2
    Howjoe1
    Closed Accounts Posts: 2,666 ✭✭✭Howjoe1


    Is the €8,000 her gross rental income of net profit?


  • #3
    Pandoras Twist
    Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Pandoras Twist


    Gross. Theres some expenses and capital allowances but as its not a trade I didn't think they were deductable.

    Regardless im thinking she still has to pay the 500 minimum?


  • #4
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Pandoras Twist wrote: »
    Gross. Theres some expenses and capital allowances but as its not a trade I didn't think they were deductible

    That's the spirit, it's a pity there are not more people who want to pay more tax than they need to.

    75% of mortgage interest and repairs are deductible if registered with PTRB.

    Insurance and other expenses are also allowed. If her profit is more than €5,000 then the minimum PRSI is €500.


  • #5
    Howjoe1
    Closed Accounts Posts: 2,666 ✭✭✭Howjoe1


    Pandoras Twist wrote: »
    Gross. Theres some expenses and capital allowances but as its not a trade I didn't think they were deductable.

    Regardless im thinking she still has to pay the 500 minimum?

    Letting are generally regarded as investment income. A mortgage usually reduces profits as well as other expenses. Is it mortgage free?

    If the net profit is above €5,000 she is stuck with a min payt of €500. if the net profit after allowable deductions was less than €5k then I think no PRSI applies based on it being her only source of income.


  • #6
    Howjoe1
    Closed Accounts Posts: 2,666 ✭✭✭Howjoe1


    http://www.revenue.ie/en/tax/it/leaflets/it70.html


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  • #7
    Pandoras Twist
    Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Pandoras Twist


    I didn't see much about deductibility of expenses for prsi on that link, I might be missing something though!

    Thanks for all your help, revenue assessed her for the minimum 253 last year and the income was broadly similar so going to go with the 500 for this year.


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