# Tax on Rental Income



## Investmind (15 Jan 2008)

Hi There

Ive a couple of question in relation to my rental tax return..

Myself & my g/f bought a place pre dec 05 so we are ok in relation to clawback of SD, also i know we have to join the PRTB and both inform the revenue and BS in relation to losing our TRS1 relief

My first question is:

What is the % tax rate on rental income if my g/f is on 20% bracket and im on 41% bracket?

Just take the below:

Rental Income.........7500 (Mar - Dec)

Exps
Mortgage Interest Mar 08-Dec-08.....5833 (Starting renting in Mar 08)
Insurance.......................200
Maintenace fees..............700
Caretaker Fees................100

Taxable Income..........667

Does the above look right and if yes what is my final tax and is PRSI to be paid as well? is this return due by deadline 31/10/09?

Finally last 2 questons:
1. Are we entitled to rental relief if we are now going to be renting elsewhere taken the account of the above?
2. What will be our taxable amount above if we move out foreign to work and have to do our return online and send on cheque as we will not be on any tax brackets here? I was thinking since we are not resident here maybe we wont have to worry about it???


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## ClubMan (15 Jan 2008)

*Re: Renting Out?*



> *Renting Out?*


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## ClubMan (15 Jan 2008)

*Re: Renting Out?*

Can't answer all of your questions but...


Investmind said:


> and BS in relation to losing our TRS1 relief


BS? 


> What is the % tax rate on rental income if my g/f is on 20% bracket and im on 41% bracket?


So her (50%?) share is taxed at 20% (unless the additional income pushes her into the 41% band) and yours is taxed at 41% I presume? You need to do two separate returns if you are not married.


> 1. Are we entitled to rental relief if we are now going to be renting elsewhere taken the account of the above?


Do you mean the private rental accommodation tax credit? If you are renting accommodation then you are entitled to this.


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## Investmind (15 Jan 2008)

I hope the above title is satisfactory

By BS, I mean Building Society 

By renting out a private residence in another county where one would be working, one would be entitled to rent relief

If anyone can answer if 5% PRSi is due on the tax return and also the final question re: doing a return on a property rented out in Ireland while living
abroad??

I would be grateful


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## Butter (15 Jan 2008)

I think PRSI is due if you have not already exceeded the PRSI limit for that year.  If you have already earned above that limit you won't be liable for PRSI on the income but you will have to pay the 2% health levy on the taxable income from the property.  It sounds as though your girlfriend at least will have to pay PRSI and the health levy on her portion as she is only taxed at 20% and therefore won't have exceeded the PRSI threshold.  For you it will depend on how much your other income is.
I am open to correct though if anyone knows for sure.


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## ClubMan (15 Jan 2008)

Investmind said:


> By renting out a private residence in another county where one would be working, one would be entitled to rent relief


Where would you be tax resident? I don't think that you can get the rent relief tax credit when residing abroad?

If you are unsure about how to do your rental income tax (and _PRSI_?) return correctly then get professional advice.


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## Ham Slicer (16 Jan 2008)

Investmind said:


> final question re: doing a return on a property rented out in Ireland while living
> abroad??
> 
> I would be grateful



As a non-resident landlord you'll have to appoint a collection agent in Ireland.  Search Rev website for non-resident landlord.

Return will have to be made and you'll likely have no tax credits so tax will be payable on any profit arising.  You will have normal SRCOP.


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## ClubMan (16 Jan 2008)

Ham Slicer said:


> As a non-resident landlord you'll have to appoint a collection agent in Ireland.  Search Rev website for non-resident landlord.


I think _Revenue _leaflet _IT 77 _linked from the _Property Investment FAQ _also summarises the requirements in this context.


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## Howitzer (16 Jan 2008)

Investmind said:


> Myself & my g/f bought a place pre dec 05 so we are ok in relation to clawback of SD,
> 
> .....
> 
> Rental Income.........7500 (Mar - Dec)


Are you sure you're ok with relation to stamp duty? The last line suggests you started renting the apartment out in March 07. The changes to the stamp duty clawback going from 5 years to 2 only occured in November 07. My understanding is that you were liable for stamp duty clawback in March 07 (and interest on a daily basis since then) and that the subsequent changes have no effect on your position.


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## asdfg (16 Jan 2008)

> The last line suggests you started renting the apartment out in March 07


 
OP posted 


> Mortgage Interest Mar 08-Dec-08.....5833 (Starting renting in Mar 08)


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## Investmind (17 Jan 2008)

I would be resident in ireland if i was renting in another county so therefore i would be entitled to rent relief

I am aware that no rent relief could be gained from renting abroad

That wasnt my question if you read correctly


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## Investmind (17 Jan 2008)

Am i not right in thinking it is up to the tenant to pay any tax due to revenue when
a landlord resides outside the state


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## Ham Slicer (17 Jan 2008)

Yes - they will deduct 20% from your rents and pass it over to Revenue.

If you appoint a collection agent you can receive the rent gross


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## ClubMan (17 Jan 2008)

It's up the the tenant or the landlord's agent to withold some or all tax (potentially?) due. [broken link removed] and [broken link removed] cover some of the tax issues relevant to non resident landlords.

_Post crossed with Ham Slicer's._


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