Astronomical Tax on Rental Income

Mediocre

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Folks,
First year filling out a Form 11 in order to settle my tax for receiving rental income for a property I purchased in the boom, had to move out of due to job location switch and the property is worth half what I paid for it, so can't sell.
Received €9350 rental income for the house for the year.
ROS tells me that I owe €6938.
Can that possibly be correct, that's 74% of the sum, mad?
Thanks for any insights in advance,
Al.
 
Also, should mention, I am a PAYE worker, as is my wife, and I thought we had paid our tax for 2018 already.
Is this not necessarily the case?
 
It’s hard to say without seeing the information that you’ve entered, but I suspect you’ve not claimed your PAYE credits in the return or something like that.

The thing with ROS is that you do have to re-enter things that are already coded into your Tax Credit Cert and therefore given at source in order to avoid the calculation clawing them back.
 
It’s hard to say without seeing the information that you’ve entered, but I suspect you’ve not claimed your PAYE credits in the return or something like that.

The thing with ROS is that you do have to re-enter things that are already coded into your Tax Credit Cert and therefore given at source in order to avoid the calculation clawing them back.

Thanks for taking the time to reply GG.
Just did what you said and now I have to pay €3638, which is a sizable improvement, down to 39%.
 
With higher rate tax at 40% + prsi at 4% + usc at 2% or more that seems low
 
Might be worth thinking about getting an accountant to do your tax returns for you in future? You might pay €400 a year, but you can deduct it against the rental income, so really it’s costing you €200. There’s a good chance if you sit down with them and look at expenses on the rental, they may be able to point you to more that are claimable, recouping some or all that €200 quickly.
 
Marginal rate for self employed over 100k is 55%, which makes it extremely difficult to pay down debt, whereas overseas investors pay almost no tax. So all the rent is going out of the country Because Irish taxed investors can’t compete, how clever our politicians are.
 
Have a look at any of the big five accountants web sites, too complicated for a post. Look at QIF’s etc. They will set them up for overseas investor. Investing in residential property makes no sense for a top rate Irish tax payer, but these funds are buying blocks of apartment, all the profit is untaxed and leaves the country while those who live here are cleaned out, not a level playing field. How can anyone pay down debt when the income is taxed at 55%?
 
Don't you think "overseas investors" are taxed on their profits in their home countries?

Have you taken the time to understand the IREF rules?

Don't get me wrong - I agree with you that the taxation of rental profits in Ireland is OTT.

But you are just buying into cheap propaganda if you believe that "overseas investors" pay no tax.
 
... whereas overseas investors pay almost no tax...

Investment structures pay no tax - same as your pension fund. Same is true in virtually all jurisdictions. The concept is that an investor pays tax on exiting (in some form - depending on the jurisdiction).

This argument irritates me a bit because you don't see the same people arguing that their pension fund should pay tax on the income it receives.
 
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