Beware taxation of FSO's compensation

PTSB customers that are going to have "tracker windfalls" should also be aware that they will have a potential TRS liability too as they will have received too much based on being on a higher rate. In some cases this can add up to several thousand over a five year period.
 
Its an interesting question...the FSO never usually award large amounts of money usually put you back to where you were and maybe a couple of hundred (potentially taxable)

The TRS is a valid point but would only accrue a tax liability if principal was near the TRS ceiling and mortgage was slow

Having said that if compensation accrues any form of interest on interest which it should the secondary interest would be taxable but not the interest they overpaid getting back
 
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