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Declaring revenue from forestry thinnings

  • 23-05-2021 07:22PM
    #1
    nickmax
    Registered Users, Registered Users 2 Posts: 24 ✭


    Hi, I am attempting to file our tax return (wife and I) for 2020. Normally it costs me €300 to get someone else to do it because I find it so boring and not to mention confusing! Our situation should be straight forward, I just can't believe we were charged €300... Anyway moving on....

    We are both PAYE earners but have 2 sources of unearned income. One is covered by the Rent-A-Room Scheme (form 11) and the other relates to a small amount of forestry that we own which was thinned and we made a profit on when the timber was sold. Its clear where I should disclose the info pertaining to the rent-a-room but i'm struggling with how i should disclose the money from the sale of the timber.

    Thanks in advance!


Comments

  • #2
    Marcusm
    Registered Users, Registered Users 2 Posts: 11,126 ✭✭✭✭Marcusm


    Profits or gains from the occupation of woodlands on a commercial basis with a view to the realisation of profits is exempt from income tax but not PRSI/USC. Thinnings can be included within the exempt profits but the commercial basis/view to profit test is import (as distinct from selling trees in your domestic garden for example).

    I would expect you insert it on page 10 of form 12 under exempt income describing the source.


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