Form 12 Quick Q - Rental Income is only income

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Hi,

Quick question, if a person's only income is rental income on a property of €14,400 , is this all then taxed at the lower rate 20% ?

Same as PAYE?

thanks

barneystinson

Olive Deafening Reporter wrote: »

Hi,

Quick question, if a person's only income is rental income on a property of €14,400 , is this all then taxed at the lower rate 20% ?

Same as PAYE?

thanks

Is that the amount of rent, or the profit after deducting allowable expenses?

If it's the profit, they'll need to file a Form 11, not a Form 12.

The answer to your question is yes.

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barneystinson wrote: »

Is that the amount of rent, or the profit after deducting allowable expenses?

If it's the profit, they'll need to file a Form 11, not a Form 12.

The answer to your question is yes.

It's the total rent, there is no profit as the mortgage is more than the rent, and that figure is before expenses.

They got a form 11 in the post, but online the available form once logged in is e12, does that sound right?

prettyrestless

Olive Deafening Reporter wrote: »

It's the total rent, there is no profit as the mortgage is more than the rent, and that figure is before expenses.

They got a form 11 in the post, but online the available form once logged in is e12, does that sound right?

Mortgage doesn't come into it. Profit is rent less expenses.

You can only file a form 12 if additional income (non paye) is €3174 or less, so you'd need a form 11 from the sounds of things.

barneystinson

prettyrestless wrote: »

Mortgage doesn't come into it. Profit is rent less expenses.

You can only file a form 12 if additional income (non paye) is €3174 or less, so you'd need a form 11 from the sounds of things.

What do you mean mortgage doesn't come into it? The interest on a mortgaged property is normally the biggest expense in a rental income computation.

OP, just to be clear, go and read leaflet IT70 on the Revenue website. Once the net rental income has been calculated if it is less than 3,174 a form 12 will do and if it is higher a form 11 will be needed.

mllyssn

My son has entered the Eir apprenticship progam and I was was wondering if I can still claim this credit for 2015 and beyond. He is 19 and it says on the Form 12 school or college or name of employer if employed as an apprentice. Can I still claim him as a child dependant even though he's getting a salary from Eir?

prettyrestless

barneystinson wrote: »

What do you mean mortgage doesn't come into it? The interest on a mortgaged property is normally the biggest expense in a rental income computation.

OP was referring to the fact that mortgage repayments are in excess of rental income, which is irrelevant when computing tax due.

barneystinson

prettyrestless wrote: »

OP was referring to the fact that mortgage repayments are in excess of rental income, which is irrelevant when computing tax due.

Any mortgage repayment which exceeds the amount of rent is almost certainly made up primarily of interest. To suggest the mortgage is irrelevant without qualifying the statement is not helpful advice.

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Thanks lads, sorted

prettyrestless

barneystinson wrote: »

Any mortgage repayment which exceeds the amount of rent is almost certainly made up primarily of interest. To suggest the mortgage is irrelevant without qualifying the statement is not helpful advice.

I made an incomplete point but let's not get too carried away. OP has solved their problem which is the main point of this post.