meijin wrote: » much simpler solution: rent to unrelated tenants & give your friends 500e/month cash PS nobody can predict what will happen in relation to RPZ, but under current legislation you can't "go back to market value"
punisher5112 wrote: » Op these tend to end in disaster and friendship lost. Be very careful as there have been quite a few on here stating their friends stopped paying, overstayed, wrecked the place etc etc.
Aye Bosun wrote: » Thanks for your concern, but that’s not an issue I’m worried about. I appreciate these things can south at any point but for this thread i’d just like to focus on the legality of RPZ and reinstating the higher rent when the house goes back up for rent. Not being rude, just want to focus on the issue at hand!
Aye Bosun wrote: » Current tenant has just handed in their notice. I’ve friends who’ve hit hard times and I’d like to assist if I can, I was thinking about letting them rent the place from me for a few years at a reduced rent to let them save and get back on their feet. So my question is, if the property is currently rented for €1500/m and to help my friend out I’m happy to reduce the rent to €1000/m for the few years they need it, when it comes to renting the property again I am only allowed increase the rent by 4% on the €1000 rent or can I revert back to €1500/m which is market value. Basically, I don’t want to be penalised in the long the run for doing friends a favour and find the property can only be rented out below market value after the leave!
Aye Bosun wrote: » Thanks folks, it looks like a no on this front..appreciate all the advise, as usual you guys are an endless source of info!
Browney7 wrote: » You could set the rent at 1500 and they pay you a 1000 and you never pursue the arrears. It could be an option.
Kingp35 wrote: » Don't do this. Revenue will assume you received €1500 pm and tax you on this.
ted1 wrote: » He’ll pay tax on the 500 before he gives it to a friend , the friend will have to pay tax on their extra 6,000 euro income. OP. How well do you know these ? In a few years if they are getting cheap rent will they move ? When they go on a foreign holiday or make big purchases will you look on thinking that you just paid for then ?
Kendall Mammoth Hangar wrote: » I’m not saying he should give money to the friend but the 6k would be very much a gift so the op can gift 3k to his friend and 3k his friends wife/partner totally tax free and above board. A few k to help someone out is the very definition of a gift. Only 1k per month would be declared in the tax return along with bank statements proving only 1k per month received. I see no revenue issue at all with this. Why would revenue assume anything.
4ensic15 wrote: » The tenancy and the amount of rent has to be registered with the RTB. The revenue will assume that the registered rent is being charged and received and will not believe bull about "helpin a friend".
Kendall Mammoth Hangar wrote: » Sure the amount of rent registered with the RTB often bares no resemblance to the actual rent as it’s often raised well above what was registered. Also the RTB has nothing to do with revenue. A LLs dealing with revenue is his tax return, where he declares his income and pays his tax, what is registered with the RTB is meaningless it’s nothing whatsoever to do with revenue or his tax return etc.
4ensic15 wrote: » The Revenue have the right to get details of any rental from the RTB. They can and frequently obtain such info. The will assume the rent registered is the minimum and it would take some convincing to claim that a rent below the registered rent and market value was being charged.
Garibaldi? wrote: » The Revenue and RTB do not automatically engage with each other. If there were an issue or a query they would. Revenue and RTB should be given the same information. Otherwise the property owner might have awkward questions to answer.
Ray Palmer wrote: » It is incredibly common for a landlord not to get all rent due. Revenue do not find this unusual. Unless anything is flagged intentionally they won't look into anything. People have a strange view of civil servants where they are both lazy and also incredibly diligent. Lots of automation for processing records where they are rarely viewed by a human in any detail is the reality
banie01 wrote: » A means of protecting the RPZ and reducing tax liabilities on both parties could perhaps be a caretaker agreement? Others can no doubt confirm or exclude.
Garibaldi? wrote: » I'd say the Revenue are well used to hearing all kinds of stories. I wouldn't get creative about the rent but would gift the people some money f they need it and you have it. Anything up to €3000 p.a. to ANY PERSON does not attract a tax liability on either side.
Kingp35 wrote: » You're correct, it is automatic. If you register a tenancy with the RTB for €1500pm and you file a tax return that includes rental income of €1000pm then Revenue's system will flag this and you may be subject to a tax compliance intervention. If you can't sufficiently prove you only received €1000pm then you will be taxed on the €1500 plus interest and possible penalties.
Ray Palmer wrote: » Revenue act on tax returns and records. You file and provide details through an accountant. Even if revenue look up the rent registered it makes absolutely no difference you provided records of income. There is no convincing as you provide proof. Have you ever filed a tax return because it doesn't sound like you have?
Garibaldi? wrote: » Sometimes genuine, reliable tenants fall into a situation where they simply cannot pay the rent. They come to an arrangement with the landlord. It would be very uncaring of any landlord not to help a tenant in a situation like this. It's also in the landlord's own interests. Who would want to have to go through advertising, PRTB registration, changing of utility bills etc etc if that person were gone? But legitimate documentation is essential in case the Revenue make enquires.
1874 wrote: » Someone who wants/needs the rent to be paid
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