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Form for tax return part time landlord

  • 11-09-2016 7:36pm
    #1
    riclad
    Registered Users, Registered Users 2 Posts: 8,184 ✭✭✭


    My friend works in a company office full time 9-5 ,pays paye and usc .
    Her last 5 tax returns have been made on form 12,
    her mortgage is 150k,
    rental income is 6k,
    Should she use form 11 or form 12 for this years tax return.
    She sends in tax return by post for the past 6 years using form 12
    I helped her fill in form 11 ,
    i,m just wondering should i just start over ,and just help her to fill in form 12.

    Since form 12 goes to limerick tax office ,form 11 goes to another tax office,
    in a different county .
    her profit after tax allowances vs rental income is zero.
    ie she will not be liable for any tax on rental income for tax year 2015.
    Her tax allowance,s are 6,400 for 2015.
    i,m concerned re Is there a rule if your investment income is over 5k ?
    You will need to use the ROS online self assessment tax form .

    i have read the guide to rental income on revenue.ie
    It does not say which form to use for rental income .
    forms 11 and form 12 both have sections on rental income .


Comments

  • #2
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    riclad wrote: »
    My friend works in a company office full time 9-5 ,pays paye and usc .
    Her last 5 tax returns have been made on form 12,
    her mortgage is 150k,
    rental income is 6k,
    Should she use form 11 or form 12 for this years tax return.
    She sends in tax return by post for the past 6 years using form 12
    I helped her fill in form 11 ,
    i,m just wondering should i just start over ,and just help her to fill in form 12.

    Since form 12 goes to limerick tax office ,form 11 goes to another tax office,
    in a different county .
    her profit after tax allowances vs rental income is zero.
    ie she will not be liable for any tax on rental income for tax year 2015.
    Her tax allowance,s are 6,400 for 2015.
    i,m concerned re Is there a rule if your investment income is over 5k ?
    You will need to use the ROS online self assessment tax form .

    i have read the guide to rental income on revenue.ie
    It does not say which form to use for rental income .
    forms 11 and form 12 both have sections on rental income .

    I'm assuming the rental income and mortgage interest is from a property which is not her principal residence. If this is the case then just continue to do what you've been doing. If Revenue require you to complete a form 11 they'll let you know. Either way you have made a tax return and fulfilled your obligation s.


  • #3
    riclad
    Registered Users, Registered Users 2 Posts: 8,184 ✭✭✭riclad


    She bought an apartment 11 years ago.Btl loan ,investment property.
    Rented out .
    she lives in apartment 1,
    rents out the investment property. apartment 2.
    I,ll just tell her to fill in form 12,
    copy over info from form 11 .
    the revenue always accepted form 12 every year .
    Sent by post.
    Loan is 160k, apartment btl unit is now worth 70k.
    She cant afford to sell it.
    due to neagtive equity
    IE she has 2 bank loans , Bought 2 apartments 11 years ago in the boom time.
    lives in 1 apartment ,
    rents out the blt apartment no 2.


    she claims expenses plus 75 per cent of loan blt interest
    as allowances against the rental income of 6k per year.
    So she pays zero cent tax on the rental income .

    she pays interest about 4per cent btl rate on both loans .
    She rents out one apartment,

    the other one is her principal private residence .


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