# form 11 or form 12?



## Kelb28 (24 Oct 2007)

Hi...

My parent have rented out a house and i said i'd fill out the tax return. i assumed i was to use Form 11 but now i see there is a form 12... what is the difference which should i use?

thanks


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## Clarkey (24 Oct 2007)

Kelb28 said:


> Hi...
> 
> My parent have rented out a house and i said i'd fill out the tax return. i assumed i was to use Form 11 but now i see there is a form 12... what is the difference which should i use?
> 
> thanks


 
PAYE worker's fill out a form 12. Self employed people fill out a form 11. If the taxable rent after expenses is more than €3,174 then you are considered to be a "chargeable person" and obliged to fill out a form 11 every year and subject to self assessment deadlines. PAYE workers are not expected to do a tax return every year but any taxable income must be returned on a form 12.


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## Kelb28 (24 Oct 2007)

Thnaks for that... its a loss this years anyways so Fom 12 it is. Was confused cos i do my partners on a form 11 but he is self employed. thats great. can fill in those forms now. would you recommend filling online?


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## Glenbhoy (24 Oct 2007)

My colleague has a situation wherein 2 PAYE taxpayers (husband and wife) have 50% of a house with their daughter (PAYE, but has to file Form 11 anyway), the house was purchased in 2006 and profit will be about 5000 in total, I presume that the parents will only have to file a Form 12?


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## Slim (25 Oct 2007)

I am a PAYE worker as is my wife. we have a residential investment property and my wife took out a PRSA last year and paid a PRSA contribution in respect of 2005. I completed the Form 11 and sent to Revenue who apparently lost it. Contacted them recently and they said to send a copy to local tax office, not Limerick as it says on the Form 11. Local tax office is now dealing with 2005 claim. Now, which do I complete for 2006 - Form 11 aznd send to Limerick or local tax office OR Form 12 (which I do not think has a section for PRSA contributions)?

Any thoughts?

Slim


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## webtax (25 Oct 2007)

Glenbhoy said:


> My colleague has a situation wherein 2 PAYE taxpayers (husband and wife) have 50% of a house with their daughter (PAYE, but has to file Form 11 anyway), the house was purchased in 2006 and profit will be about 5000 in total, I presume that the parents will only have to file a Form 12?



so parents share is 50% of €5,000 = €2,500?
if yes then under 3,175 so form 12


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## ubiquitous (25 Oct 2007)

webtax said:


> so parents share is 50% of €5,000 = €2,500?
> if yes then under 3,175 so form 12



Is a partnership return not also required in this case?


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## Glenbhoy (25 Oct 2007)

ubiquitous said:


> Is a partnership return not also required in this case?


Thanks for the replies guys, re the above, would that require much extra to be done, I was going to do it for them as a favour (I normally get a good meal out of it!!), but if it's getting complicated, I'd advise them to get a professional.


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## ubiquitous (25 Oct 2007)

Form 1 (Firms) is the partnership return. The partnership may also have to register for tax in its own right. Personally if I were you I wouldn't take this sort of work on unless I had specific prior experience and knew exactly what was required. Will they appreciate your effort if you get it wrong?


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## Glenbhoy (25 Oct 2007)

ubiquitous said:


> Form 1 (Firms) is the partnership return. The partnership may also have to register for tax in its own right. Personally if I were you I wouldn't take this sort of work on unless I had specific prior experience and knew exactly what was required. Will they appreciate your effort if you get it wrong?


Since I don't accept money and ensure they know exactly what the risks are (ie I am not a tax professional, nor have I worked in practice for a long time) I don't think they've any comeback!!
I haven't got the full details yet, but from what I know of the situation it's an informal venture between parents and child, the three names are on the deeds but that's the only formalisation that exists. Anyway, I'll have a look at the Form 1 and see what the next step should be, thanks again.


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