Married Couple & Rental Income Tax Query

D

dip01053

Guest
Would be greatful for any help with the below query, have read through other threads and could not find a similar scenario.

Married couple.
Wife 50k
Husband 25k
Live in house in wife's name
Husband has a rental property in his name

Question is, if do separate assessments can tax bands of husband be transferred to wife and husband pay rental income tax of 20% + prsi
or
would single tax assessments have to be done to allow husband pay rental income tax at 20% and therefore loose benefit of transferable tax band.

Thanks for any comments
 
My easy suggestion to answer this question is to download Revenue ROS software and run different scenarios. The latest current form 11 software is for 2008 and, to the best of my knowledge, the rules haven't specifically changed thought rates, income levies etc have.
 
Tax liability for married couple will be the same if jointly assessed or assessed under separate assessment.

Separate assessment merely allows both to complete separate returns and claim their proportion of credits and rate bands.

Liability will be the same either way.

Separate treatment on the other hand can be claimed (in advance) but that is not usually beneficial.

www.taxingtimes.ie
 
Assuming the husband's income of €25K is Paye, and the rental income would be on top of this, he is entitled to €36,400 at 20%.
Unused lower rate band can be transferred to the wife only up to €45,400, and her income is already beyond that, so she will be paying some tax at the top rate.
 
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