# Rental Income and tax return



## ddd (30 Oct 2013)

this is a snapshot of my rental returns for 2011:
- Amt of chargable income after expenses but before capital allowances - €800
- Capital Allowances available for 2011 - €2050 
- Capital Allowances used against rental income in 2011 - €800 (since this was the profit i only had available to write off)

Question:
Does this mean I reported a rental income loss of €1250 for 2011 since I was not able to use my full capital allowances.
Can I carry this €1250 into my 2012 returns as a rental loss from a prior year?


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## DB74 (30 Oct 2013)

Yes


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## mandelbrot (30 Oct 2013)

Yes and No - it carries forward but as unused prior capital allowances, not as a rental loss.

See here for the order of set-offs...
[broken link removed]


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## candyman (31 Oct 2013)

Similar question on the calculations, assuming a taxable amount (gross rent received p/a - allowable expenses) of 5k, are the below calcs correct?

Income tax due = 5000 x 41% = 2050
USC due = 5000 x 7% = 350
PRSI due = 5000 x 4% = 200

Total tax due = 2050 + 350 + 200 = 2600?

Many thanks.


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## Joe_90 (31 Oct 2013)

You need to be aware of the different treatment of capital allowances and losses for PRSI and USC.

PRSI is computed after capital allowances but before losses forward.

USC is computed before capital allowances and losses forward.


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## candyman (31 Oct 2013)

@joe_90 very good, yet subtle point. I am in year 1 with zero losses to carry forward.


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## Max Powers (2 Dec 2013)

Rental property will be empty for all of 2013. In next years return for 2013, what do I put in for under rental income. (zero income and X000's out for out?) or would you just leave that section blank?


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## Bronte (2 Dec 2013)

Max Powers said:


> Rental property will be empty for all of 2013.


 

That's very odd, why would it be empty for an entire year?


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## elcato (2 Dec 2013)

> Rental property will be empty for all of 2013. In next years return for 2013, what do I put in for under rental income.


Are you registered for form 11 filing ? If not and you are filing a form 12 then you just don't send any form in.


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## Max Powers (2 Dec 2013)

elcato said:


> Are you registered for form 11 filing ? If not and you are filing a form 12 then you just don't send any form in.



Yeah, i will need to fill in form 11 anyway as i do some nixers that require me to make a return so what will I put in rental columns?

Place has been empty for various issues, problems, redecoration etc apart ourselves staying there some weekends.


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## elcato (2 Dec 2013)

Then leave it blank. You can carry over the loss to the following year afaik.


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## Max Powers (3 Dec 2013)

elcato said:


> Then leave it blank. You can carry over the loss to the following year afaik.



thanks, by leave blank, do you mean put outgoings (75% mortgage int etc) in and nothing/zero in income box? I guess that is accurately whats happening but im just wondering will revenue think i made a mistake or something. Done it on line last year for first time, wasnt exactly straightforward and easy to complete it all.


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## Nutso (4 Dec 2013)

Max Powers said:


> Yeah, i will need to fill in form 11 anyway as i do some nixers that require me to make a return so what will I put in rental columns?
> 
> Place has been empty for various issues, problems, redecoration etc apart ourselves staying there some weekends.



For my own information:

What would Revenue's view be of claiming all expenses on a rental property that is not rented out for an entire year?


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## elcato (4 Dec 2013)

> What would Revenue's view be of claiming all expenses on a rental property that is not rented out for an entire year


Dim I'd say. If there's no rental they may deem it's not a business. What if you decide to move in yourself the following year. I'd say an audit would be coming your way.


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## Joe_90 (4 Dec 2013)

Why was the property not rented.  Is it available for rent and you could not find a tenant, then while not ideal the loss incurred would be either carried forward or set against other rents in the current year.

If you just decided that you were fed up dealing with tenants and did not offer the property for rent or occupied the property yourself or let someone stay there for free then the expenses would not be allowed.


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## Bronte (5 Dec 2013)

Max Powers said:


> Place has been empty for various issues, problems, redecoration etc *apart ourselves staying there some weekends.*


 
Well that is a problem.  

You still haven't clarified why there is zero rent for an entire year?

Looks to me that you are not able to offset the mortgage and expenses.


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## Joe_90 (5 Dec 2013)

If you are staying there because you are decorating then probably expenses continue to be allowed.

 If you are staying there because you were in town shopping then the expenses would not be allowed.


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