Form 12

H

Hawthorn

Registered User
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Hi
I am a Paye worker and I am filling in a form 12 to declare rental income on an Apartment I bought last year. I am having difficulty with one or two of the questions on page 5.
"Net Rental Income (After expenses but before Capital Allowances)"
"Net Rental Loss(After expenses but before Capital Allowances)"
"Capital Allowances forwarded from a prior year"
"Capital Allowances available to carry forward or offset"

Can someone explain in simple terms what the capital allowances refer to. Sorry if this is a basic question but It is my first time filling in one of these. There is a mortgage on the property and the rental income comes to about 5000 euro per year.
Many thanks
 
Clubman, in one of those links it says that you can't use losses on property income to offset against other income, ie. you can only carry forward and offset against future property income gains. Doesn't the form 12 give you the option of offsetting against other income?
 
Rental income is treated as investment income and can only be carried forward.
Income from trades can be set off agains other income in the same year.
 
Hi there,Be very careful.. I was in same boat in 2005, filled in form 12 for 2004 and was told in 2006 that it should be form 11E instead for 2005 and 2004 returns even though in 2005 they took the stuff form me on that form anyway!
I have since back and forward to tax office on the phone and have filled out 11E for 2005's return. I am also PAYE and have house rented out.Just check with your local office first as it really pays to get to know someone there who can help, are you dublin based?? My office in Dun Laoghaire/rathdown and they are very helpful.
I since got tax bill for €4500 for 2005 but it was wrong without be knowing as I'm not good with figures (was not my fault but it seems that TAx office frequently dont give you correct allowance etc) and they looked over it all and reduced it to €25, it really pays to do it all now before submitting.
I followed the example in the booklet they can send you about deductions, worth a look too.

Hope this helps
 
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