Hi folks,
I hope everyone is well. I'm a tad confused and not sure what do to. Really hope someone can advise me what the best move is.
Here is my scenario:
- I own 40% of a property and have done so for quite a few years. My friend owns the other 60%
- I am not a resident but my friend is.
- We have a joint bank account where the rent is paid into
- The rent is paid by the Rent Assistance Scheme
- Each previous year I have submitted a tax return and I have paid 20% tax on the income.
I have been somewhat naïve as this is not the correct process. From a bit of research, the tenants should be deducting 20% of the rent or a collection agent should be collecting the rent on my behalf and paying the tax on it.
The issue that I have is:
1. As I only own 40% of the property then 40% of the rent is mine. This makes it difficult to go down the route of having the tenants deduct 20% of my 40%. Throw in the RAS and its avenue we want to avoid if possible
2. My friend can become my Collection Agent which I think would mean he would have to submit a tax return each year under a new PPS number. How will the tax commissioners view this as I have been doing it wrong for sometime (but have been paying the bill every year)?
3. I think the RAS can withhold tax (again it will be 20% of my 40%) but can you still claim deductions each year? How can I submit 2020 & 2021 if this process isnt in place?
Is there anyone else that is a Non Resident Landlord that owns a property with a friend/business partner that can advise the best way forward?
Is it best to just call the Revenue office to explain the scenario and try and work out the best way forward so I can submit 2020 and future tax years?
Ideally it would have been much easier to submit a return myself each year and pay the appropriate tax but that option doesn't seem to be available anymore
Its all pretty confusing and I'm not sure what to do. Sorry for the long winded message
Thanks all
I hope everyone is well. I'm a tad confused and not sure what do to. Really hope someone can advise me what the best move is.
Here is my scenario:
- I own 40% of a property and have done so for quite a few years. My friend owns the other 60%
- I am not a resident but my friend is.
- We have a joint bank account where the rent is paid into
- The rent is paid by the Rent Assistance Scheme
- Each previous year I have submitted a tax return and I have paid 20% tax on the income.
I have been somewhat naïve as this is not the correct process. From a bit of research, the tenants should be deducting 20% of the rent or a collection agent should be collecting the rent on my behalf and paying the tax on it.
The issue that I have is:
1. As I only own 40% of the property then 40% of the rent is mine. This makes it difficult to go down the route of having the tenants deduct 20% of my 40%. Throw in the RAS and its avenue we want to avoid if possible
2. My friend can become my Collection Agent which I think would mean he would have to submit a tax return each year under a new PPS number. How will the tax commissioners view this as I have been doing it wrong for sometime (but have been paying the bill every year)?
3. I think the RAS can withhold tax (again it will be 20% of my 40%) but can you still claim deductions each year? How can I submit 2020 & 2021 if this process isnt in place?
Is there anyone else that is a Non Resident Landlord that owns a property with a friend/business partner that can advise the best way forward?
Is it best to just call the Revenue office to explain the scenario and try and work out the best way forward so I can submit 2020 and future tax years?
Ideally it would have been much easier to submit a return myself each year and pay the appropriate tax but that option doesn't seem to be available anymore
Its all pretty confusing and I'm not sure what to do. Sorry for the long winded message
Thanks all