Dumb question on receipts for tax bill

TallyRand

If say, I have a €5,000 tax bill on rental income for apartment I own in 2019 and I have 2019 receipts of:

€500 furniture vat inc receipt

€500 painter decorating invoice vat inc

€1,000 medical bills receipts

Does that mean the full €2,000 comes off my tax bill? Amazingly I cannot get an answer through google

dartboardio

Hey, I probably sound even more silly here but,

I thought you only get reimbursed 20% of total medical costs, so you wouldn't get the 2,000 knocked off in full?

Bold Abdu

Assuming you are paying tax at top rate:
€1,000 medical will save you €200 (relief is at 20%)
€500 painter will save you c€250 (relief, incl. PRSI & USC, is c50%)
€500 furniture will save you €31 (Furniture is capitalised and written over 8 yrs- relief at c50%)

Calahonda52

Bold Abdu wrote: »

Assuming you are paying tax at top rate:
€1,000 medical will save you €200 (relief is at 20%)
€500 painter will save you c€250 (relief, incl. PRSI & USC, is c50%)
€500 furniture will save you €31 (Furniture is capitalised and written over 8 yrs- relief at c50%)

To be clear, the medical expenses have no place in a rental income calculation.
Secondly, the paint job comes off the rental income before you do the tax calculation.
It may end up with the same number but doing the way you suggest will fail the proper books and record test if ever audited by Revenue
likewise with the 31 euro
have you deducted any allowable loan interest

Bold Abdu

Calahonda52 wrote: »

To be clear, the medical expenses have no place in a rental income calculation.
Secondly, the paint job comes off the rental income before you do the tax calculation.
It may end up with the same number but doing the way you suggest will fail the proper books and record test if ever audited by Revenue
likewise with the 31 euro
have you deducted any allowable loan interest

No suggestions made. Just informing the OP how the figures may stack up, which was essentially the question.

El Tarangu

A consultation with an accountant is tax-deductible; they would be able to tell you how best to declare your expenses to reduce your tax bill (and they might be able to point out some other deductions that you would overlook).

Stratvs

Suggest reading this.

https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

With a tax bill of €5,000 then net rent is obviously well over €5,000 which is the threshold for being classed as a "chargeable person" and that mandates ROS filing of Form 11.

TallyRand

Bold Abdu wrote: »

No suggestions made. Just informing the OP how the figures may stack up, which was essentially the question.

Yes thanks, you did answer exactly as I was hoping