Airbnb and paying taxes, renting a room in the house where I live

mille100piedi

I am trying to figure out how to fill the form 12 on line in order to pay taxes.
I don't know which option I have to select there is a rental income option but I am not sure if it is the right one.
I also don't understand what Capital Allowances mean
Can anybody advise?
thanks

Squatter

mille100piedi wrote: »

I am trying to figure out how to fill the form 12 on line in order to pay taxes.
I don't know which option I have to select there is a rental income option but I am not sure if it is the right one.
I also don't understand what Capital Allowances mean
Can anybody advise?
thanks

Form 12 is meant for PAYE employees.

If you're a landlord, then you'll probably need to register for ROS and complete Form 11.

relax carry on

mille100piedi wrote: »

I am trying to figure out how to fill the form 12 on line in order to pay taxes.
I don't know which option I have to select there is a rental income option but I am not sure if it is the right one.
I also don't understand what Capital Allowances mean
Can anybody advise?
thanks

Time for you to speak to an accountant. Airbnd income is not Case V rental income. It's case I or case IV.

https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0592018.aspx

i71jskz5xu42pb

Squatter wrote: »

Form 12 is meant for PAYE employees.

If you're a landlord, then you'll probably need to register for ROS and complete Form 11.

If it's less than €5k income I think you can use form 12 assuming you've PAYE income.

relax carry on wrote: »

Time for you to speak to an accountant. Airbnd income is not Case V rental income. It's case I or case IV.

https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0592018.aspx

There are a few accountants online with info on what to do with AirBnB revenu & tax.

http://www.paddyquinn.ie/tax-implications-airbnb-hosts/
https://www.taxback.com/blog/airbnb-expenses/
https://bradyassociates.ie/blog/item/530-tax-implications-of-airbnb-hosting

Also a bit on askaboutmoney.com

Depending on how much you're making an accountant may/may not make sense. Although it's your responsibility to get it right so you'd want to be confident in what you're doing.

Squatter

Joel Noisy Trooper wrote: »

If it's less than €5k income I think you can use form 12 assuming you've PAYE income.

You're quite right, thanks. I hadn't realised that the Form 12 threshold was now €5,000!

https://www.irishtimes.com/business/personal-finance/revenue-rule-change-eases-pressure-on-taxpayers-to-file-returns-1.3091987

mille100piedi

I earn less then 4000 Euro a year, at the moment an accountant is doing this for me, but she is asking me 200 Euro I find this too expensive for the money I earn.

mille100piedi

In the from 112 I found the following:

Rental Income
Trading Profit
Deposit Interest Received
Untaxed Income Arising in the State
Exempt Income
Exempt Income from Personal Injury
Fees and Commissions
Irish Taxed Income
Maintenance Payments Received
Property Relief Surcharge
Other Lump Sum Payments
Rent Paid to Non-Resident Landlord
Emp/Off/Pen not subject to PAYE deductions
Withdrawal of funds from AVC
Lump Sums from Relevant Pensions
Distributions from ARFs, AMRFs & PRSAs

I guess I have to select the rental income?I think this option is more for landlord that rent a whole house and not just a room so I am not sure it is the right one

Squatter

mille100piedi wrote: »

In the from 112 I found the following:

Rental Income
Trading Profit
Deposit Interest Received
Untaxed Income Arising in the State
Exempt Income
Exempt Income from Personal Injury
Fees and Commissions
Irish Taxed Income
Maintenance Payments Received
Property Relief Surcharge
Other Lump Sum Payments
Rent Paid to Non-Resident Landlord
Emp/Off/Pen not subject to PAYE deductions
Withdrawal of funds from AVC
Lump Sums from Relevant Pensions
Distributions from ARFs, AMRFs & PRSAs

I guess I have to select the rental income?I think this option is more for landlord that rent a whole house and not just a room so I am not sure it is the right one

I assume that the top bit should read "Form 12"?

Are you renting a room in your house long term, in which case you'd be eligible for the rent a room relief, or are you AirBnB ing?

mille100piedi

yes sorry I meant form 12

I rent from September to March long term and this case it it was easy to fill the form 12 for the rent a room scheme relief
but from March to September I only host guests for short term

joseph_a_f

The airbnb income is below 5K so it should be declared as trading profit as its a short term guest accomadation as opposed to renting out a whole property as a landlord.
See info about this on bottom of webpage https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

Select Trading Profit and you will be prompted to enter your gross profit and any expenses you incurred while trading as airbnb - advertising expenses etc.

Capital allowances would not usually apply in the case of short term airbnb income. It is an allowance on the white goods (eg. cooker , fridge) or furniture purchased for the purpose of the airbnb. The revenue website have example on this. https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

mille100piedi

joseph_a_f wrote: »

The airbnb income is below 5K so it should be declared as trading profit as its a short term guest accomadation as opposed to renting out a whole property as a landlord.
See info about this on bottom of webpage https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

Select Trading Profit and you will be prompted to enter your gross profit and any expenses you incurred while trading as airbnb - advertising expenses etc.

Capital allowances would not usually apply in the case of short term airbnb income. It is an allowance on the white goods (eg. cooker , fridge) or furniture purchased for the purpose of the airbnb. The revenue website have example on this. https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

Thank you very much, I didn't know it was so easy, I can't believe I paid 200Euro to an accountant for many years for doing this!