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In the Dail today

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    #122
    McTigs
    Registered Users Posts: 1,032 ✭✭✭McTigs


    Kinley Blue Rattler wrote: »
    Tax on rent needs to be significantly reduced also to make it profitable for LL's to enter the market and stay in the market along with a drastic increase in rights for LL's. A flat rate of around 20% on rental income regardless of other income would help. Another addition would be the ability to write off the entire mortgage repayment against tax not just the interest.
    No business can write off capital repayments against tax, why should property letting be treated as a special case?


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    #123
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    McTigs wrote: »
    No business can write off capital repayments against tax, why should property letting be treated as a special case?

    Well they can in fact to some extent using capital allowances. Property letting is the odd one out as you will see being pointed out by many where you are subject to different rules compared to other businesses.


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    #124
    The Student
    Registered Users Posts: 1,253 ✭✭✭The Student


    McTigs wrote: »
    No business can write off capital repayments against tax, why should property letting be treated as a special case?

    I think the poster meant to say that the asset should be depreciated (like all other assets) would be in a business.


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    #125
    McTigs
    Registered Users Posts: 1,032 ✭✭✭McTigs


    Kinley Blue Rattler wrote: »
    Well they can in fact to some extent using capital allowances. Property letting is the odd one out as you will see being pointed out by many where you are subject to different rules compared to other businesses.
    That is probably because houses tend not to depreciate in value to zero like plant and machinery. It would be entirely inappropriate to treat bricks and mortar the same way as other assets for that reason.

    Again in no other business are capital allowances available for land and buildings, why do you think property letting should be made a special case?


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    #126
    McTigs
    Registered Users Posts: 1,032 ✭✭✭McTigs


    The Student wrote: »
    I think the poster meant to say that the asset should be depreciated (like all other assets) would be in a business.
    Land and buildings are not depreciated or provided for with capital allowances in any other business.


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    #127
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    McTigs wrote: »
    Land and buildings are not depreciated or provided for with capital allowances in any other business.

    That’s where you are very wrong. Capital allowances are very much allowed at a rate of 4% per annum over 25 years on buildings for many businesses.


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    #128
    The Student
    Registered Users Posts: 1,253 ✭✭✭The Student


    McTigs wrote: »
    Land and buildings are not depreciated or provided for with capital allowances in any other business.

    Yes buildings are! Once the capital allowance is used up the carry amount of the asset in the company's accounts is depreciated down to zero. If it is revalued the revaluation goes into Retained Earnings.

    If it is not revalued and the asset is subsequently sold then tax is payable on the market value of the asset as the carrying amount is zero.


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    #129
    davindub
    Registered Users Posts: 1,447 ✭✭✭davindub


    The Student wrote: »
    McTigs wrote: »
    Land and buildings are not depreciated or provided for with capital allowances in any other business.

    Yes they are! Once the capital allowance is used up the carry amount of the asset in the company's accounts is depreciated down to zero. If it is revalued the revaluation goes into Retained Earnings.

    If it is not revalued and the asset is subsequently sold then tax is payable on the market value of the asset as the carrying amount is zero.

    Investment property is treated differently, it varies between standards but the fair value (no depreciation) is the appropriate method.

    Revenue doesnt allow capital allowances on residential property.


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    #130
    abcabc123123
    Registered Users Posts: 286 ✭✭abcabc123123


    The Student wrote: »
    Still want small landlords out?
    https://www.independent.ie/irish-news/dozens-of-tenants-stage-protest-as-landlord-hikes-rents-by-up-to-25pc-37390012.html
    With the drawbacks also come the benefits: https://www.irishtimes.com/business/commercial-property/state-s-biggest-landlord-shelves-25-rent-hike-in-sandyford-1.3655988


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    #131
    STB.
    Registered Users Posts: 5,380 ✭✭✭STB.


    Fian wrote: »
    No way in hell would it be appropriate to have a 20% rent on unearned income (rent) while the marginal rate on salries is so much higher.


    No way in hell is it appropriate to apply social housing obligations, rent control and other madness on private homeowners because the government have been sitting on their hands when it comes to building affordable housing for the last 12 years.


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    #132
    The Student
    Registered Users Posts: 1,253 ✭✭✭The Student


    abcabc123123 wrote: »
    With the drawbacks also come the benefits: https://www.irishtimes.com/business/commercial-property/state-s-biggest-landlord-shelves-25-rent-hike-in-sandyford-1.3655988

    Do you honestly think they will not try another avenue.


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    #133
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    Yer Da sells Avon wrote: »
    This is why the state needs to build loads and loads of housing for rent and offer it not just to people on low incomes, but to people on higher incomes too: to kill off profit-hungry private landlords for good, because they do society no good.
    So you want only the government to rent houses? They'll just outsource it to te lowest bidder, and wipe their hands of it.
    tvjunki wrote: »
    well that's is what will happen if large companies or housing associations come in and own the all the rental houses.
    It's what happens when instead of a number of small landlords competing, one large organisation does what it wants. If you look at what I quoted above from Yer Da sells Avon - if only the government rented houses via a 3rd party, said 3rd party could increase rents and no-one would have the option of moving elsewhere.
    Yer Da sells Avon wrote: »
    Lots of people on here (I've no idea whether they're landlords themselves, or just very sympathetic towards them) do seem to have a problem with the idea of building social housing. 'Communism', according to some...
    You'll find that the problem people have is that said housing will be built near jobs, whereas those who work in said jobs have to buy houses far far away.
    McTigs wrote: »
    No business can write off capital repayments against tax, why should property letting be treated as a special case?
    Do said business have to wait up to a year to evict a non-paying tenant?
    The Student wrote: »
    Still want small landlords out?
    https://www.independent.ie/irish-news/dozens-of-tenants-stage-protest-as-landlord-hikes-rents-by-up-to-25pc-37390012.html
    abcabc123123 wrote: »
    With the drawbacks also come the benefits: https://www.irishtimes.com/business/commercial-property/state-s-biggest-landlord-shelves-25-rent-hike-in-sandyford-1.3655988
    I see they're testing the waters. You'll see various REIT's test different avenues. And once one can do something, the rest will quickly follow. But unlike a slow increase of rent by a few landlords, it will be a wave of increase flowing throughout Dublin.

    People want amateur landlords out? They'll miss them when they find that REITs have deep pockets for lawyers.


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