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Rental Income

  • 15-10-2016 10:40AM
    #1
    Registered Users, Registered Users 2 Posts: 2


    Hi All, myself and my husband are 'accidental landlords'. I had an apartment when we met. I moved in with my now husband and the apartment was rented. Our tenants have recently moved out after 5 years. The apartment was in a state and it cost us a lot of money to get it back to a fit state. We would like to let my husbands sister move in for a year. She is saving for a house and so we don't want to charge her rent. Are there any tax implications for either my husbands sister or us?

    Thanks!!!!


Comments

  • Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    The free use of property is a gift and subject to CAT so the amount of rent foregone BUT there is an annual gift exemption of €3,000 per person so that €6,000 from yourself and your husband.
    Is she married then its another €6,000 for him.

    You can't claim interest relief while the property is being occupied rent free.


  • Registered Users, Registered Users 2 Posts: 2 SadieMae


    Hi Lockedout2

    Thanks so much for the info. She has a partner that will be moving in with her, does it make a difference if they are not married, can we still claim the gift exemption for both 2 x €6,000 = €12,000 annually? You say the gift is subject to CAT, what is CAT?

    Thanks again, we don't want to end up with a tax bill at the end of the year!!

    Sadiemae


  • Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    Yes €12000.

    CAT capital acquisitions tax - Tax on gifts.


  • Closed Accounts Posts: 5,482 ✭✭✭Hollister11


    Would you not charge rent of like 100 a month. The there's no gift, just a cheap house.


  • Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    Would you not charge rent of like 100 a month. The there's no gift, just a cheap house.

    Unless the market rent is €100 per month then there is a gift!!


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