Form 12 tax return query

have you registered with the prtb? you have to in order to claim your interest deduction (i'm not sure what you mean about a further tax benefit). also, you don't claim your furniture as an expenses, as you should claim it through the wear & tear allowance.

Yes.. Registered with PRTB about 2 weeks after getting tenants in...sorry meant to say W&T allowance. I mean as it is an interest only mortgage what kind of tax relief can i expect if any .
regards
L

The full amount of the interest can be offset againt rental income. i.e. in your example, your rental income is €9000. Your deductibles are €8400 interest, and whatever the depreciation and insurance costs are. In fact, it sopunds as though you'll be in no better than a break-even situation, and maybe a loss.

You *must* be registered with the PRTB (and have to confirm this and produce evidence in case of a revenue audit) to be allowed offset interest against the rent received, but the cost of registration is also deductible.

Revenue told me [edit: inaccurately] that for rent in excess of about €3000, a Form 11E should be returned instead of a Form 12.

Edit: Yes I was surprised, yes I did query it - but had since decided that I was submitting a Form 12 anyway since it's just more appropriate. Cheers, webtax and DonKing for validating that for me!

Thanks for prompt response dreamerb..your answer makes sense and i will also submit the form 11E

Dreamerb said:

Revenue told me that for rent in excess of about €3000, a Form 11E should be returned instead of a Form 12.

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Should that not be rental profit of €3,175 or higher (and as lamb is losing money on the property, form 12 is what should be submitted)?

webtax said:

Should that not be rental profit of €3,175 or higher (and as lamb is losing money on the property, form 12 is what should be submitted)?

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Webtax, you are quite right it's rental profit greater than €3,175.


Lamb, I find it quite surprising that you bought an investment property and you didn't know that you could deduct the mortgage interest against your rental income when calculating taxable profit.

Hi Donking

Yes... I have to admit to a little bit ignorance when it comes to revenue/tax, but i am learning the hardway