# Tax on rental if going into executor's account?



## babydays (15 Dec 2010)

Hope this is the correct forum?

My sister and I are the beneficaries of the family home which has been on the market for the last 6 months. Tennants have just moved in and have paid 1st rent into the executor's account. 

Will we be liable for income tax on this even though we're not drawing it down as it's staying in the executor's account. We'll eventually be benefitting from it if/when the house gets sold. 

I'm about to register with PRTB and just wonder is this going to affect our tax situation?


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## jpd (15 Dec 2010)

The executor is responsable for paying the tax due on the rental income and making the necessary returns to the Revenue.

The executor should register with the PRTB as legally the house belongs to the deceased's estate and he/she/they are the legal representative of the estate. Normally, the executor will have to apply for a new PPS number for the estate and this is the number to register with the PRTB.


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## babydays (15 Dec 2010)

Thanks jpd. 

This really is news to me.  The solicitor said that once the rent is being paid into the executor's account/as it's part of the estate of the deceased that income tax wouldn't be payable on it as it will be part of the inheritance.... We hadn't intended drawing down any funds from that account until the house is sold. 

I've already sent off the form to PRTB - presumably they'll send it back to me now. Who should I apply for a new PPS number from?

Could you point me in the direction of documents relating to this? On googling this I found clear directions for Hong Kong and the UK but not Ireland!!!! 
Many thanks in advance.


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## fender (15 Dec 2010)

jpd is correct.

I don't see why there would be no tax payable on income to the estate. Contact your local revenue office for the pps number.

http://www.revenue.ie/en/personal/circumstances/bereavement/executors.html#section2-5

Income and Capital Gains during the administration period
It may take the personal representative some time to administer the estate during which time income may be earned or capital gains may be made. Broadly the position is as follows.

Income Tax
	•	The personal representative is liable to pay Income Tax at the standard rate on income earned during the administration period. There is no entitlement to personal credits or to any of the reliefs otherwise available to individual taxpayers.
	•	In certain circumstances, the tax office may concessionally agree to treat the beneficiary as succeeding to the inheritance from the date of death. In such circumstances, the beneficiary will take full responsibility for paying Income Tax on the post-death income as if he or she had been entitled to the asset - and the income - from the date of death.


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## babydays (16 Dec 2010)

Thanks so much for the replies - and putting me on the straight and narrow!!!

I checked through the correspondance with our solicitor and he got it wrong it seems! Not great - I'm not expecting him to be a tax expert but surely this case isn't completely unusual.

Anyhow. Tks again.


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