When to do my taxes as a landlord?

beatlesfan3333

Hi all, I rented out my house in May 2015. This is my first time being a landlord. Do I need to do my taxes in October 2015 or October 2016? Thanks guys.

Mrs OBumble

If you do it by August 2016, then Revenue will do the calculations for you.

beatlesfan3333

Oh thanks, I thought I'd have to get an accountant to do my landlord taxes and that you're supposed to do them every October? I know you can do your taxes yourself but I wouldn't feel confident doing them myself.

detoxkid

Following this because I've just paid an accountant to do mine! Do they do it for u if u get the details in by a certain date?!

ted1

detoxkid wrote: »

Following this because I've just paid an accountant to do mine! Do they do it for u if u get the details in by a certain date?!

No need for an accountant , it's a basic enough form. Just be sure to deduct every cent spent and 12.5% depreciation on white goods etc

athtrasna

I'd be inclined to get an accountant to do it first time (it's also an allowable expense) and keep a copy of everything so you are confident when you're doing it next time.

Robert McGrath

ted1 wrote: »

No need for an accountant , it's a basic enough form. Just be sure to deduct every cent spent and 12.5% depreciation on white goods etc

Don't follow this advice. Not every expense is deductible.

ted1

Robert McGrath wrote: »

Don't follow this advice. Not every expense is deductible.

Nearly all are, and a quick trip to revenue will confirm.
http://www.revenue.ie/en/tax/it/leaflets/it70.html#section3

newacc2015

Robert McGrath wrote: »

Don't follow this advice. Not every expense is deductible.

Anything legit incurred carrying the Business is a deductible expense eg stationary, cleaning stuff for house, paints, stamps, part of your phone bill. An accountant will think of things, you would never think of.

Pay a folder and put every receipt into it

detoxkid

newacc2015 wrote: »

Anything legit incurred carrying the Business is a deductible expense eg stationary, cleaning stuff for house, paints, stamps, part of your phone bill. An accountant will think of things, you would never think of.

Pay a folder and put every receipt into it

Honestly wondering if my accountant was too unimaginative so. We claimed for furniture and fittings and at that the full ammiunt wasn't deductible. Also insurance etc. I should really do it myself and on paper it sounds straightforward but he does something with our p60's too? For us our tax bill was 3000 odd and the rent we received was just under 8k. Negative equity mortgage, rent doesn't cover the mortgage and we only moved to get better jobs and are renting now because we can't afford a mortgage. Feels like I'd be better on the dole

handlemaster

detoxkid wrote: »

Honestly wondering if my accountant was too unimaginative so. We claimed for furniture and fittings and at that the full ammiunt wasn't deductible. Also insurance etc. I should really do it myself and on paper it sounds straightforward but he does something with our p60's too? For us our tax bill was 3000 odd and the rent we received was just under 8k. Negative equity mortgage, rent doesn't cover the mortgage and we only moved to get better jobs and are renting now because we can't afford a mortgage. Feels like I'd be better on the dole

That looks like you didnt deduct much expenses. But he again some say been a landlord is a mugs game with the high taxes

ted1

detoxkid wrote: »

Honestly wondering if my accountant was too unimaginative so. We claimed for furniture and fittings and at that the full ammiunt wasn't deductible. Also insurance etc. I should really do it myself and on paper it sounds straightforward but he does something with our p60's too? For us our tax bill was 3000 odd and the rent we received was just under 8k. Negative equity mortgage, rent doesn't cover the mortgage and we only moved to get better jobs and are renting now because we can't afford a mortgage. Feels like I'd be better on the dole

How much Interest did you pay on your mortgage? What expenses did you have throughout the year? How much did you depreciate your assets by?

Fol20

beatlesfan3333 wrote: »

Hi all, I rented out my house in May 2015. This is my first time being a landlord. Do I need to do my taxes in October 2015 or October 2016? Thanks guys.

You need to file your tax return before October 2016 for your 2015 tax return. Get an accountant to do it for you and claim it as an expense.

pwurple

detoxkid wrote: »

Honestly wondering if my accountant was too unimaginative so. We claimed for furniture and fittings and at that the full ammiunt wasn't deductible. Also insurance etc. I should really do it myself and on paper it sounds straightforward but he does something with our p60's too? For us our tax bill was 3000 odd and the rent we received was just under 8k. Negative equity mortgage, rent doesn't cover the mortgage and we only moved to get better jobs and are renting now because we can't afford a mortgage. Feels like I'd be better on the dole

Rent was 8000, and your tax bill was 3000... Did you remember to submit medical expenses as well?

If rent doesn't cover mortgage and you can't afford the tax due, consider switching mortgage to interest only or renegotiate terms on that for next year.

detoxkid

pwurple wrote: »

Rent was 8000, and your tax bill was 3000... Did you remember to submit medical expenses as well?

If rent doesn't cover mortgage and you can't afford the tax due, consider switching mortgage to interest only or renegotiate terms on that for next year.

Yep..fortunately or unfortunately whatever way u look at it I don't have many medical expenses. I can afford it I just can't afford to save much, I'm working to break even although I have a 'good' stressful job. Anyway sorry op in hijacking your post

Pawwed Rig

€3,000 tax on €8,000 rent would imply (roughly) €2,000 of deductions. He got your P60's because that information should also be included on your Form 11 for the year. The assumption must be that your P60 income is in excess of the relevant limits meaning none of the rental income is taxed at 20%. There may be ways around this depending on marital status etc etc. I would say get advice from a tax advisor separately to doing your return.

Just a note for folk - in general where you ask an accountant (or preferably a tax advisor) to do your return then that is what they will do. This will be based on the information you give them. They will most likely not spend any time considering a better way for you to structure your affairs for more efficient use of tax bands/reliefs etc. This kind of advice should be requested and paid for separately. Tax returns are somewhat of a loss leader for alot of firms. The proper money comes in the form of additional advice.

googled eyes

I'd have to say get yourself an accountant. We did it ourselves for a couple of years and while its easy enough to do there is a chance of making mistakes ( we did and ended up with a big bill one year )
As said above their fee is deductable and there is a lot to be said for the peace of mind knowing its done.

filbert the fox

googled eyes wrote: »

I'd have to say get yourself an accountant. We did it ourselves for a couple of years and while its easy enough to do there is a chance of making mistakes ( we did and ended up with a big bill one year )
As said above their fee is deductable and there is a lot to be said for the peace of mind knowing its done.

Accountants can make mistakes too.

There's plenty of time for the OP to gather the necessary advice. There are lots of sources of info including on this site and other discussion fora.

As said before, the Revenue will even calculate your liability on rental income should you have yourself organised by 31st August 2016.

BTW OP have a look at the various forms on revenue - forms 11 and 12 and the guides mentioned in previous posts. Gives you an indication of the way the tax authorities regulate this market in tax terms.

But if you're not happy to do it yourself hire a pro. In the meantime don't forget to gather up all of the receipts relating to the letting, your P60 for 2015 which you'll get after new year, insurance receipts, accountant's invoice etc.

Good luck.

beatlesfan3333

Thanks for all the advice guys, it's been really helpful. I might just contact an accountant this October to check if it needs to be done then or if I should wait until October 2016. Thanks anyway for all the advice.

Carawaystick

If you have no other self employed income, just paye income, it's easy. Assuming you can figure out paye tax.
paye income - clearly stated on p60
rental income - clearly stated on rent book
expenses - from the receipts you kept.

profit is the income - expenses

I used to fill out the tax return form in Jan/Feb after I got my p60.

You pay self employed tax for the first year next October but you also pay for next year next October... even for the rent you get in Nov & Dec2016...

ted1

Carawaystick wrote: »

If you have no other self employed income, just paye income, it's easy. Assuming you can figure out paye tax.
paye income - clearly stated on p60
rental income - clearly stated on rent book
expenses - from the receipts you kept.

profit is the income - expenses

I used to fill out the tax return form in Jan/Feb after I got my p60.

You pay self employed tax for the first year next October but you also pay for next year next October... even for the rent you get in Nov & Dec2016...

Your forgetting depreciation. Interest , etc

doctorwho-fan

I just got my bill from accountant for revenue and it turns out to be about 100 euro more than last two years? even though i have given them more expenses and had work done on house, costing me 700 euro extra for someone else living in my house, robbers the revenue are

Pawwed Rig

doctorwho-fan wrote: »

I just got my bill from accountant for revenue and it turns out to be about 100 euro more than last two years? even though i have given them more expenses and had work done on house, costing me 700 euro extra for someone else living in my house, robbers the revenue are

PRSI was it?

The_Conductor

Pawwed Rig wrote: »

PRSI was it?

USC on gross rental income too......

Mrs OBumble

doctorwho-fan wrote: »

...costing me 700 euro extra for someone else living in my house, robbers the revenue are

How much profit are you making from them, though, to be paying that much tax.

It could be said that the real robbers are the landlord.


(I'm a LL, BTW).

doctorwho-fan

I AM NOT MAKING A PROFIT!!!! I AM PAYING 700 EURO FOR THE PRIVALGE OF SOME ONE ELSE IN MY HOUSE, IT WAS NOT BY CHOICE,

The_Conductor

I get you- honestly I do. Structuring some of the taxes on gross rental income- irrespective of whether or not you're making a profit- is a joke. The only beneficiary of all of this- is the Revenue Commissioners.

athtrasna

Calm down please. No need for shouting

Mod

doctorwho-fan

Excuse my slip of the caps lock under a lot of stress, going for coffee now

relax carry on

The_Conductor wrote: »

I get you- honestly I do. Structuring some of the taxes on gross rental income- irrespective of whether or not you're making a profit- is a joke. The only beneficiary of all of this- is the Revenue Commissioners.

Correction, the State is the beneficiary. Revenue do not decide at the drop of a hat to dream up new taxes. You may wish to direct your ire at governments of the day and particularly the Minister for Finance who ultimately decides these things. Revenue are tasked with implementing government tax related policies.

Mrs OBumble

doctorwho-fan wrote: »

I AM NOT MAKING A PROFIT!!!! I AM PAYING 700 EURO FOR THE PRIVALGE OF SOME ONE ELSE IN MY HOUSE, IT WAS NOT BY CHOICE,

Well ask them to leave, and you'll be 700E better off.

Or are you not mentioning that income from the tenant is paying the bulk of your mortgage. In which case you would be a lot worse off if they weren't there.

doctorwho-fan

people like you an me are paying the bulk of rent as tenant is on rent allowance, they are only paying 130 a month towards rent. can't sell house, well you know why

sunnysoutheast

The_Conductor wrote: »

USC on gross rental income too......

USC is chargeable on gross rental income - allowable expenses.

Depreciation on F&F (and losses from previous years) are ignored for USC.

IT and PRSI are chargeable on gross - expenses - depreciation.

Unless this has changed since 2013. I never had losses to carry over, but I think they can be subtracted for IT and PRSI as above. Not USC.