in the process of completing my tax return for a property I have rented out

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banshee

Registered User
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hello,
I am in the process of completing my tax return for a property I have rented out .Are details of deposit interest earned, credit union dividends , shares aquired/sold required for revenue and are they tax deductable in some manner ?
 
Re: tax return

banshee said:
hello,
I am in the process of completing my tax return for a property I have rented out .Are details of deposit interest earned, credit union dividends , shares aquired/sold required for revenue
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If the form asks for them then they are. What form are you using?
and are they tax deductable in some manner ?
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What do you mean? Why would deposit interest and CU dividend income be tax deductible!? Deposit interest is taxed via DIRT at source and there should be no further tax liability. CU deposit interest/dividends may be [broken link removed]. Capital assets such as shares sold for a loss or gain are relevant to CGT not income tax.

You probably should get professional advice given the questions that you are asking.
 
Re: tax return

ClubMan said:
Deposit interest is taxed via DIRT at source and there should be no further tax liability.
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Unless the individual's income is liable to tax at the higher rate, in which case the DIRT is a part payment of the amount of tax due on the interest income as opposed to the full tax liability.

Similarly, if the persons income has no income assessable at the marginal rate (20%) then they may be due a tax refund for DIRT paid.
 
Re: tax return

Even if you pay tax at the higher rate, there is no additional tax on interest from which DIRT was deducted.

On the other hand, no DIRT will be refunded unless you are aged over 65 or permanently incapacitated.
 
Re: tax return

jocmccoy said:
Unless the individual's income is liable to tax at the higher rate, in which case the DIRT is a part payment of the amount of tax due on the interest income as opposed to the full tax liability.
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This is incorrect.

Clubman's previous comment on this issue was correct.

jocmccoy said:
Similarly, if the persons income has no income assessable at the marginal rate (20%) then they may be due a tax refund for DIRT paid.
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This is incorrect unless the taxpayer is among the minority of taxpayers who are eligible for DIRT refunds, ie over 65s etc
 
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Re: tax return

Afaia you have to include Interest Received (Gross interest - before deduction of DIRT). Revenue include this as part of your income and you are taxed accordingly. However they also increase your tax credits. Net result is the same as DIRT being deducted at 20%

Open to correction on this
 
Re: tax return

I seem to recall that if deposit interest was over a certain amount then there may be a PRSI liability on this income. Should be covered in other threads but probably only an issue if you are raking in thousands in deposit interest annually?
 
Re: tax return

Ubiquitous.

absolutely correct - I stand corrected in both regards.
 
Re: tax return

ClubMan said:
I seem to recall that if deposit interest was over a certain amount then there may be a PRSI liability on this income. Should be covered in other threads but probably only an issue if you are raking in thousands in deposit interest annually?
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Correct. However will also be a PRSI liability if you have other non paye income such as s/e earnings, etc..
 
Re: tax return

ClubMan said:
I seem to recall that if deposit interest was over a certain amount then there may be a PRSI liability on this income.
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if over €3,174 net income from self employed/deposit interest/rental income etc. then you fall under self assessment and are liable to prsi on this income (and health levy).
 
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