Do I need to pay tax on property?

D

Daisychain

Guest
I own one property, bought in 2001 which was my primary residence and I lived there myself until 2008. In Jan 08 I moved away and let the house. Originally I was in receipt of €1350 per month from tenants and more recently dropped the monthly rent to €1000. I do not own any other properties and I have been renting an apartment paying rent of €1000 per month since I let my house.
I need to know whether or not I am liable for tax on this property. Most information I have found on the taxing of rental properties refer to 'second property' (including reviews on the recent property levy of €200).
I registered my tenants with the PRTB in Jan 08 and I myself am registered with my landlord.
I have not applied for any rent allowance during this period. I am wondering if I fall into the investor category and subject to the same tax as if I owned a second property?
 
The €200 is a tax on Non Principal Private Residences www.nppr.ie . It is not as such a tax on "second" properties but a tax on any property that one owns which is not ones PPR. As such I think that you are liable to register and pay the charge. See the official website for more information.

You may also be entitled to rent tax credit in respect of the apartment which is your PPR.
http://www.revenue.ie/en/tax/it/credits/rent-credit.html

You will also as has been said have to return the rental income.
 
Daisychain said:
I own one property, bought in 2001 which was my primary residence and I lived there myself until 2008. In Jan 08 I moved away and let the house. Originally I was in receipt of €1350 per month from tenants and more recently dropped the monthly rent to €1000. I do not own any other properties and I have been renting an apartment paying rent of €1000 per month since I let my house.
I need to know whether or not I am liable for tax on this property. Most information I have found on the taxing of rental properties refer to 'second property' (including reviews on the recent property levy of €200).
I registered my tenants with the PRTB in Jan 08 and I myself am registered with my landlord.
I have not applied for any rent allowance during this period. I am wondering if I fall into the investor category and subject to the same tax as if I owned a second property?
Click to expand...

Hi,

When you rent your property, the income that you get from it is subject to taxation, just like any other income. However, you don't have to worry about paying high taxes on rental income because you can lower your taxes in so several different ways.The money spent in putting out advertisements to rent your property or hiring an agent can all be put down as expenses on renting property for which you can get tax deductions. All travel expenses for purposes of seeing your tenant, getting tenants, finding agents for help in renting, for looking into property maintenance, getting repairs done and so on are subject to tax deductions.
 
Hi Grayson,

This is an irish based site so the tax deduction regulations are not the same as the jurisdiction where you are sitting,

Regards

westgolf
 
Thanks guys
So my understanding is that I will have to declare the income and the property will be treated like an investment property for tax purposes?
Is there an option for me to declare the income under the 'rent a room' scheme? i.e. the property is rented to a couple but my room is still there?
How does the PRTB operate in terms of data protection legislation? Are they obliged to pass on relevant information to revenue?
 
Daisychain said:
Thanks guys
So my understanding is that I will have to declare the income and the property will be treated like an investment property for tax purposes?
Is there an option for me to declare the income under the 'rent a room' scheme? i.e. the property is rented to a couple but my room is still there?
How does the PRTB operate in terms of data protection legislation? Are they obliged to pass on relevant information to revenue?
Click to expand...

If the house is your PPR and the income in total from rent-a-room is under €10,000 then you may avail of it. If the income exceeds €10,000 it is treated in the normal fashion for rent and ALL is taxable not just the excess over the €10,000. If you do not live there then you cannot avail of it.

PRTB is not relevant if under Rent-a-Room, otherwise it is a legal requirement to register.

Interest on a mortgage on investment property is not allowed by Revenue against rental income unless registered with PRTB. When filing your tax return under normal rent rules you must confirm on the tax return that you have complied with PRTB.
 
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