Landlord from December 2024. Form 11, Form 12.

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happypat

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  • Landlord from December 2024 so only 1 months rent received (and 1 months deposit) - non paye income less than 5k, so assume Form 12 ok for 2024?
  • For 2025, approx €30k in rent so Form 11. Understand must be returned to Revenue by October 2025.
  • Heard that there is "preliminary tax" and that not only would I be sending Form 11 in October 2025, but that I would have to pay in advance for 2026?
  • What if preliminary amount paid not the same as actual tax due - is this like Form 12, rebate or monies owed calculated at end of following year?
  • Form 11 due if more than 5k non PAYE income - but in a marriage with joint assessment, what is position with this 5k figure - is it 5k total or 10k given joint assessment.
Thanks for any assistance.
 
Preliminary tax is based on either 100% of the liability for the previous year or 90% of the current year. So in 2025 you will be using either of these two rules to pay your preliminary tax. If you had no tax liabilty for 2024 then you have no preliminary tax liability. It may be worth your while getting an accountant to file your first one or two years returns and then take it over yourself. The accountancy fees are tax deductible. If you are only doing it once a year it can be a good bit of work to get yourself up to the knowledge required to file correctly. Penny wise & pound foolish is what I've seen in people doing their own taxes (and making a mess of them).
 
Your 2025 tax return is due by October 2026. You will owe the tax for 2025 and preliminary tax for 2026 at that stage so keep that in mind and don't spend all the rent from the first year when you get it!
 
Just in above responses @Ciru75 @dublin67

Is the face that a small bit of rental was received in 2024 (small enough for Form 12 threshold) have any impact on the first "preliminary tax"? Thanks.
 
If you're in a commencement situation with a rental and going to be on self-assessment (Form 11) going forward, it makes more sense to file Form 11 rather than Form 12 in the first year. Anything else is a recipe for confusion and you don't want Revenue to be confused when reviewing your tax compliance record.

It's a pity that a ridiculous PRSI anomaly punishes people for doing that.
 
Are you sure about not paying preliminary tax in 2025? The preliminary tax obligations, when in self assessment, as of 31 October 2025 are to pay either 100% of the 2024 tax liability or 90% of the currrent year liability. Is this prelimnary tax obligation turned off when a Form 12 is filed? I don't know the answer to that question and it would take me a while to get there. The downside of not paying preliminary tax on 31 October 2025 is that the individual has a potential 8% simple interest exposure running from 31 October 2025 to date of payment of the balance and that will be around November 2026. In my view the downside is too high and I'd advise paying 2025 preliminary tax especially as it would be a relatively small amount.
 
Corola said:
If Form 12 is filed then the 2024 tax liability is collected through a reduction of tax credits in 2025-2028.
Click to expand...
That's going to get very messy if you end up filing Form 11s for 2025 - 2028 because Form 11 does not easily accommodate tax credit reduction adjustments.
 
happypat said:
  • Form 11 due if more than 5k non PAYE income - but in a marriage with joint assessment, what is position with this 5k figure - is it 5k total or 10k given joint assessment.
Click to expand...
5k total

Unearned Income, Form 11 or 12?

A married couple, jointly assessed, each with less than 5k in unearned income in a given year. When added together however they will have just over 5k. Does that remain within the scope of a form 12, or is one of the couple required to register with ROS and complete a form 11?
www.askaboutmoney.com
 
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