Airbnb as executor

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Searcher

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Hi, when my dad was in a nursing home, as powers of attorney, we let out a room several times a month, mainly weekends. He passed away in 2016 and we continued doing this. The house is on the market & probate hasn't gone through quite yet. It's not big potatoes but revenue are enquiring about income from Airbnb and I'd like to know who is liable for the tax. It was used to pay bills, repairs and even funeral expenses at one point. Was it my fathers income while he was alive and is it the estate's income after that? Thanks
 
Searcher said:
Hi, when my dad was in a nursing home, as powers of attorney, we let out a room several times a month, mainly weekends. He passed away in 2016 and we continued doing this. The house is on the market & probate hasn't gone through quite yet. It's not big potatoes but revenue are enquiring about income from Airbnb and I'd like to know who is liable for the tax. It was used to pay bills, repairs and even funeral expenses at one point. Was it my fathers income while he was alive and is it the estate's income after that? Thanks
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Yes. Taxable at his marginal rate plus PRSI (unlikely) & USC if applicable during his lifetime, and on the estate at a flat 20% (no PRSI, USC, nor credits etc) after that.
 
T McGibney said:
Yes. Taxable at his marginal rate plus PRSI (unlikely) & USC if applicable during his lifetime, and on the estate at a flat 20% (no PRSI, USC, nor credits etc) after that.
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Thanks, I assume nursing home fee's and medical expenses can be offset against the taxable amounts for those years?
With the estate is it 20% after expenses - cleaning, portion of bills relating to room rental?
 
Searcher said:
Thanks, I assume nursing home fee's and medical expenses can be offset against the taxable amounts for those years?
With the estate is it 20% after expenses - cleaning, portion of bills relating to room rental?
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Generally, yes. But best get professional assistance unless you know what you're doing. Ensuring Revenue processes the post-death estate Form 11 return(s) is straightforward if you know how but can be messy otherwise.
 
T McGibney said:
Generally, yes. But best get professional assistance unless you know what you're doing. Ensuring Revenue processes the post-death estate Form 11 return(s) is straightforward if you know how but can be messy otherwise.
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Why would nursing home fees be deductable, you mean in general. But not from the AirB&B business surely?

And presumably the tax for 2016, which is late, is subject to penalties and interest.
 
Bronte said:
Why would nursing home fees be deductable, you mean in general. But not from the AirB&B business surely?
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Why not?

Bronte said:
And presumably the tax for 2016, which is late, is subject to penalties and interest.
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Please don't scaremonger.

The estates of deceased persons are exempt from the imposition of Revenue penalties.

Revenue rarely charge interest on small income tax arrears, especially where there are extenuating circumstances.
 
T McGibney said:
Generally, yes. But best get professional assistance unless you know what you're doing. Ensuring Revenue processes the post-death estate Form 11 return(s) is straightforward if you know how but can be messy otherwise.
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Great advice thanks again, will get some help.
 
How is asking a legitimate question scaremongering. And it's clear there was income prior to death. So how does that come under the estate of a deceased person.

And I didn't realise that extenuating circumstances gets you some relief from revenue rules. I thought nowadays they did everything by the book.
 
Bronte said:
How is asking a legitimate question scaremongering.
...
I thought nowadays they did everything by the book.
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Speculating about penalties when you have no idea whether or not they would be likely to be applied is the essence of scaremongering.
Bronte said:
How is asking a legitimate question scaremongering. And it's clear there was income prior to death. So how does that come under the estate of a deceased person.
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Who else is going to pay the liabilities of the deceased if not their estate? :rolleyes:
 
T McGibney said:
Speculating about penalties when you have no idea whether or not they would be likely to be applied is the essence of scaremongering.


Who else is going to pay the liabilities of the deceased if not their estate? :rolleyes:
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So you could continue to rent out the house for the next 10 or 20 years and that would all be hunky dory with revenue as everything will be paid from the estate and there's no penalties.

I think asking pertinent questions is useful. That's how people like the OP and others find out different aspects that they hadn't thought of.
 
Bronte said:
So you could continue to rent out the house for the next 10 or 20 years and that would all be hunky dory with revenue as everything will be paid from the estate and there's no penalties.

I think asking pertinent questions is useful. That's how people like the OP and others find out different aspects that they hadn't thought of.
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Sorry but the statement I've highlighted indicates that you haven't the first clue what you're talking about. Of course asking pertinent questions is useful, but red herrings and scaremongering are not, and merely waste the time of those of us who have to debunk them.
 
Thank you BB, that wasn't clear to me about the nursing home fees being set against any income. I had just assumed that the AirB&B would be taxed much as a normal rental and that was where I was coming from. We're not all experts on here and I was merely trying to understand.
 
Bronte said:
And presumably the tax for 2016, which is late, is subject to penalties and interest.
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Had crossed my mind when reading this also!

T McGibney said:
Sorry but the statement I've highlighted indicates that you haven't the first clue what you're talking about. Of course asking pertinent questions is useful, but red herrings and scaremongering are not, and merely waste the time of those of us who have to debunk them.
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Un-called for responses like that would put folk off from asking any sort of question, for fear of sounding stupid. Wrong on so many levels.
 
LS400 said:
Un-called for responses like that would put folk off from asking any sort of question, for fear of sounding stupid. Wrong on so many levels.
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If you've a problem with anything I post, you should know at this stage .

I try my best here to answer posters questions as often and as well as I can.

I am frankly tired of non sequiturs and red herrings being raised by frequent posters, with the apparent aim of amusing or educating themselves. Not only are they wasting everyone's time but they also run a risk of needlessly scaring the people who ask the questions.

In this thread, I answered the question the OP posed and advised them to get professional advice if they felt they needed it. Someone else told them that they would be subject to Revenue penalties and interest. That person doesn't know the first thing about what they were telling the OP, something they confirmed by an outlandish comment that the OP could duck tax penalties by leaving the estate open for 10 or 20 years. :eek:

And you're suggesting I should have stayed silent on that? :rolleyes:
 
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Hang on a minute,

We all try to answer question as best as possible, and we rely on people, like your-self, on which I and others have no doubt about the helpful and experienced advice you give on topics related to what you do, and know best.

But, that was uncalled for. Brontes no shrinking violet on this site, and well able to handle herself, and for someone who give a lot of her time to answer folks posts, she, like myself do not portray advise given as gospel and legal, but merely open a discussion on it where it can develop into something useful and hopefully helpful to the op.

This wasnt about staying silent, more about having a little respect in your tone regarding a seasoned poster who like yourself, gives it up freely.
 
LS400 said:
Hang on a minute,

...

This wasnt about staying silent, more about having a little respect in your tone regarding a seasoned poster who like yourself, gives it up freely.
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What's wrong with "Please don't scaremonger?" :confused:
 
T McGibney said:
Sorry but the statement I've highlighted indicates that you haven't the first clue what you're talking about.
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Come on, You well know what im on about.

Look, I read your posts, There good and precise. I understand when you have, like the recently given (Previous Posts) sound advise to posters question, and then they go off and question your ability to give such advise, I get that, absolutely infuriating when you take the time to be helpful, but posters who have spent years helping others (not first timers looking to stir up trouble) imo, dont deserve your wrath.
 
I think Brontes questions were fair. I was wondering about similar things too.

The term “high horse” springs to mind
 
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