living at home tax???

[positivenote]

hi all
im hearing alot lately about a tax relief form that you can fill out if you were giving your mum a couple of hundred euro a month whist living at home and working? Is there any truth in this form and how can one get hold of it

 

[Jockey]

Hi,

That is true alright. The form you are looking for is Form Rent1 available to download from the Revenue's website www.revenue.ie. If you are single you can claim a relief up to €300. The whole point of this relief from the Revenues point of view was to stop landlords from evading tax. As far as i am aware your mother could claim Rent a room relief provided she doesnt go over the threshold of €7,620. Therefore she would probably have to complete an Income Tax return. Hope this helps.

Jockey

 

[Howitzer]

I'm surprised no one has ever asked this question before. Oh, wait a sec .

 

[positivenote]

thanks folkes. I have the form printed and am about to fill it out and try and get some cash back from the period of 2002-2005... my mam hasnt declared that the room i was living in was being rented so hopefully there wont be any reprecusions on her good self...

 

[extopia]

Perhaps you should run it by her then?

 

[Howitzer]

An explosive xmas dinner awaits.

 

[ubiquitous]

my mam hasnt declared that the room i was living in was being rented so hopefully there wont be any reprecusions on her good self...

Unless she has completed a tax return for each year and included therein a claim for the rent-a-room exemption, she may not be entitled to the exemption and may end up having to pay tax on the rent amounts as well as facing up to issues re late- or non-filing of tax returns. There may also be CGT and/or stamp duty implications for your mother.

If the Revenue conclude that the plan is an artificial tax avoidance measure they reserve the right to cancel any tax benefit arising and demand repayment of any associated tax refund etc received.

 

[liteweight]

Have any definitive conclusions been reached on any of the above points.

 

[positivenote]

jaysus, it all sounds like a lot of potential for my mam... i have been talking to a few people who claimed that they filled out the form and got a few hundred euro back... none of them mentioned if there mam/dad was paying rent-a-room tax... though it sounded a bit to good to be true..