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Rent is now a moral issue for landlords says Environment Minister

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    #32
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    The ridiculouos thing about rent is that someone in Dublin with two spare bedrooms can easily take in €12,000 per year, which is completely untaxed with no effect on social welfare. A non resident landlord is taxed left righ and centre even if his gross rent is much less that €10,000 per year. Why should one category of landlord be getting a handy €240 per week tax free when another category would even with no mortgage be luck to come out with a quater of that with the same income. Moreover when the non-resident sells he will have a CGT liability but the resident landlord has no CGT liability on selling.


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    #33
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators, Social & Fun Moderators Posts: 22,300 CMod ✭✭✭✭Pawwed Rig


    antoinolachtnai wrote: »
    In calculating profit/loss you can never take the capital repayment into account. .

    Not necessarily true when you consider things like the treatment of finance leases and industrial buildings capital allowances.


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    #34
    antoinolachtnai
    Registered Users Posts: 9,774 ✭✭✭antoinolachtnai


    I see what you mean, but strictly, a capital allowance is a tax break, it isn't anything to do with profit and a finance lease is a finance lease.


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    #35
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators, Social & Fun Moderators Posts: 22,300 CMod ✭✭✭✭Pawwed Rig


    Agreed but a mortgage would be very similar to a finance lease. Allowing it as such would only take the flick of a pen by the relevant minister. It would be a fairer way of taxing rent with a larger CGT charge on disposal thereby better matching the landlords income and expenditure rather than penny pinching and losses while renting and then a large windfall (potentially) on disposal.


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    #36
    antoinolachtnai
    Registered Users Posts: 9,774 ✭✭✭antoinolachtnai


    Pawwed Rig wrote: »
    Agreed but a mortgage would be very similar to a finance lease. Allowing it as such would only take the flick of a pen by the relevant minister. It would be a fairer way of taxing rent with a larger CGT charge on disposal thereby better matching the landlords income and expenditure rather than penny pinching and losses while renting and then a large windfall (potentially) on disposal.

    That would make it very difficult for owner occupiers especially FTB's to ever buy anything. They would be completely priced out of it by property funds.

    Old section 23/27 for new developments was effectively like you describe though.


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    #37
    Butters1979
    Registered Users Posts: 1,164 ✭✭✭Butters1979


    As a tenant myself who is obviously not happy with the rise in rents, I still cannot agree with this statement.
    There is a shortage of good accommodation in the area I want to live, but if I am capable and willing to pay more rent than someone else, then I should be able to get the place I’m looking for. All this ‘landlords need to lower rent’ is not right, the demand, and tenants willingness to spend more on rent is what’s driving it up. Why should I miss out on a place I’m willing to spend the money on because the rents are artificially low.

    It is a myth that artificially pushing down rents is good for all tenants, it is good for those with less money. There’s no point for me to have cheaper rents where I want to live if I can’t get somewhere in the first place.


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