Looks like that. I did feed back to them on all aspects, the one that most irks is the €14,000 ceiling tax free for rent-a-room. This is capital risk free compared to renting out a house and where there is no tax free exemption (if there is no mortgage) and certainly a route I will consider for the future. I also indicated that the goalposts change too often in regard to reliefs providing no certainty to investors and the 8 year depreciation for wear and tear items is a joke given white goods tend to last just 3 years.Is this just the government trying to stem the exit of landlords from the market to buy them time to increase supply?
*investors can be VAT registered and can claim back the VAT on a new-build straight-away, effectively immediately reducing the price payable by them. Prospective-residents have no such clawback available to them.
The rent a room scheme is wide open to abuse. My pal has his two bed apartment rented out. He keeps the electric and gas bill in his own name and all other correspondence for him goes to the address. He has an arrangement with the tenant as regards payment of utilities. Meanwhile he is living elsewhere with the girlfriendLooks like that. I did feed back to them on all aspects, the one that most irks is the €14,000 ceiling tax free for rent-a-room. This is capital risk free compared to renting out a house and where there is no tax free exemption (if there is no mortgage) and certainly a route I will consider for the future. I also indicated that the goalposts change too often in regard to reliefs providing no certainty to investors and the 8 year depreciation for wear and tear items is a joke given white goods tend to last just 3 years.
I too thought they had the option but needed to then charge vat on rental income...Where did you dream this? It's totally untrue.
Where did you dream this? It's totally untrue.
I dont know where they go for tax advice in your part of the world, but a landlord can charge VAT on a letting.
See Revenue details here: http://www.revenue.ie/en/tax/vat/leaflets/property-guide/letting-property-new-system.html
"the landlord may, with some exceptions, exercise an option to apply VAT to a letting".
It is usually disadvantageous to do so, but under certain circumstances it is done.
IPOA reaction to consultation reported here:-
http://www.irishtimes.com/news/cons...em-overhaul-under-department-review-1.3016144
The constant tinkering with the tax code, without any obvious principle or sound policy objective, gives rise to uncertainty and ultimately causes more problems than it solves.
Interesting piece on the current consultation exercise by Brian Keegan (Director of Public Policy and Taxation at Chartered Accountants Ireland) –
Should legislation be constructed around “accidental" landlords?
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