Discussion:Property over a million but low income..!?

dereko1969 said:
The OP has no mortgage and a very significant income, what is she doing with all that money that she can't afford €34 a week? There are plenty of other people more deserving of sympathy than this case.
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Thats quite a sweeping statement considering you have no idea what her outgoings are.
 
cashier said:
Where does it say that she has a significant income, if you referring to the €25000 approx €400 net I think you are mistaken if you think that measly sum is significant.
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I reckon it at €420 - €450 net per week, depending on whether under or over 65.

The point is there are people struggling to pay mortgages and raise families on similar amounts of money, AS WELL AS paying their own LPT. In other words, her case is not one of particular hardship, relatively speaking.
 
cashier said:
You have no idea of her outgoings perhaps high medical bills, if she is single she will not be cliaming FIS or what ever family supports are available to families on low incomes.
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In which case she'll almost certainly be allowed to defer under financial hardship. I'm not saying she should be forced to pay it, let her defer it if she genuinely can't afford to pay it, and then let the tax be paid when the property is sold/transferred.

cashier said:
Besides I am sure it is not easy having to maintain a million euro home!
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And I'm sure I'll never know how easy or hard it is to maintain a mansion!
 
truthseeker said:
15k income for a single person - she is over the limit for deferral (that may not be the final figure, but is what has been in the media).
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I haven't had any feedback or opinions on my post No.9 as regards whether deferral would/should be allowed
 
Odea said:
As you seem to be tracking all my posts I am not sure if you are trolling me or cannot understand that people lead different lifestyles and have different opinions to your own.
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Of course I'm not tracking all your posts and I'm certainly not trolling but I apologise if I've said something to offend you.
 
mandelbrot said:
EDIT: And just to reiterate a quite simple fact - if the LPT is deferred for 20 years, at current rates, the liability including interest would run to somewhere around 5 - 6% of the property value (assuming static prices).
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Well Mandelbrot I must say that if that's the case then it doesn't seem so bad. From a purely financial point of view. So those who cannot afford it can defer the tax and it goes out of their estate. Is that so awful. They're used to be a tax on estates at one point about 25 years ago, I forget the name of it. (I'm not talking about the previous property tax)

From a compliant tax payer point of view I would prefer that this tax is paid out of the estate having been deferred rather than people doing what they did last time and not paying it in vast numbers and ultimately written off.

Whatever it is about this tax it seems to make people very angry. Having paid the NPPR over the last few years myself maybe I'm lacking in empathy. Do people want income tax to rise instead?

And I think that anger can be directed not at posters on here who did not bring in the tax but at the next polling day and everybody vote for FF who on the usual vote gatering exercise will vote to abolish this tax (might have a problem with the troike though). But one way or another as we continue to pay out more (Croke park etc) than we take in, taxes have to rise. And if we're all going to write off everybodies NE as well, well we'll need more taxes for that too.

What really makes me angry though is that I don't mind paying taxes, I hate the waste. If we could see where the taxes actually go and there were some kind of accountability then things might improve a lot quicker.
 
mandelbrot said:
I was wondering if anyone would pull me on that! - all I know is the LPT is a charge on the property and has to be discharged when the property is sold/transferred. I don't know enough about succession to figure that out, but does it really make much difference?
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Not really. But you were very happy to make this point to put Truthseeker in his or her place.
 
Bronte said:
And I think that anger can be directed not at posters on here who did not bring in the tax but at the next polling day and everybody vote for FF who on the usual vote gatering exercise will vote to abolish this tax (might have a problem with the troike though). .
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I take it you're having a laugh here:D:D
Aren't you?:eek::eek:
It was a Fianna Fail Government that negotiated the first Memorandum of Understanding with the Troika. That agreement contained a clear commitment to introduce a property tax for budget 2012 as part of a revenue raising package of €1.6bn.
Fianna Fail’s 2012 pre-budget submission included a proposal for a property tax to raise €120 million.
 
seantheman said:
I take it you're having a laugh here:D:D
Aren't you?:eek::eek:
It was a Fianna Fail Government that negotiated the first Memorandum of Understanding with the Troika. That agreement contained a clear commitment to introduce a property tax for budget 2012 as part of a revenue raising package of €1.6bn.
Fianna Fail’s 2012 pre-budget submission included a proposal for a property tax to raise €120 million.
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Yes, but might it have been introduced in a fairer way under FF?
 
Bronco Lane said:
So outstanding taxes are paid off and the residue distributed?

Am I right in saying that if a house worth say €900k is left to 3 children then each gets €300k. The inheritance tax free threshold is €225k, so each pays inheritance tax on the remaining €75k.

If a house is worth €900k and is left to 3 children but has outstanding property tax of say €30k then €870k is distributed amongst the 3 children with each receiving €290k each. So each pays inheritance tax on the remaining €65k and not €75k?


Seems like a way for someone to reduce an inheritance tax bill. Am I right on this?
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Anyone know the answer to this?
 
truthseeker said:
15k income for a single person - she is over the limit for deferral (that may not be the final figure, but is what has been in the media).
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That's why I stated a partial deferral - you see I actually read the Revenue guidebook before posting rather than rely on what the media have been spouting - i suggest you do the same if you want to live up to your name.
 
seantheman said:
That agreement contained a clear commitment to introduce a property tax for budget 2012 as part of a revenue raising package of €1.6bn.
Fianna Fail’s 2012 pre-budget submission included a proposal for a property tax to raise €120 million.
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Didn't realise this. So FF cannot promise that. So then we're no doubt left with SF and the likes of Boyd Barrett who I hear preaching debt forgiveness for all but never answers who is going to pay for everything. Wonderful options SF and the independants.

Are the likes of Ming et al telling people not to pay this new tax the same as they did with the household charge? And if they are I hope they are pointing out the awful sting of 8% penalty. You can be sure based on the figures of compliance on the household charge that people are really up in arms because they have no way out of this one. Every wrong step they take, just not replying to revenue, undervaluing, not paying has some kind of severe penalty. The government has really learnt what works. I expect massive compliance.

Mandelbot if you don't mind, you've calculated the tax would be equal to 5% if you deffered for 20 years based on a 4% charge. What would it be as a percentage of the property value without the 4% charge. To see what saving one would make by not defering.

(the other tax on estates I was referring to earlier was I think called a probate tax)
 
dereko1969 said:
That's why I stated a partial deferral - you see I actually read the Revenue guidebook before posting rather than rely on what the media have been spouting - i suggest you do the same if you want to live up to your name.
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Revenue havent sent me a guidebook. No need for the attitude.
 
BOXtheFOX said:
Yes, but might it have been introduced in a fairer way under FF?
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Ah yeah,I forgot,we have a more compassionate FF now that they're in opposition. Back in 2011 before the election we had Micheál Martin, Éamon Ó'Cuív, Brendan Smith, Dara Calleary, Niall Collins, Willie O'Dea, Billy Kelleher, Michael McGrath, Sean Fleming whereas now we have..... hold on!
 
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