Own and rent a Property, Rent a Property

I thought I’d add my tuppence to this trainwreck.

In my view, Sarenco is 100% correct.

The OP lives in the other county.

‘Rent a Room’ doesn’t apply, and to contend otherwise is tax evasion.
 
ArthurMcB said:
But if she is a lodger and if it is their main residence then thirsty is correct.
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But not likely on the basis of the facts presented which are:

1) OP works in another county and rents a house there. People generally live where they work.
2) OP's sister pays rent to him to live there, almost as much as the house the OP rents
 
Thirsty said:
Be careful of high horses; serious accidents can occur.
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Without getting on my high horse about tax evasion, there is to me a very simple work around for this problem
It's not perfect and there might be something that I'm not thinking about or am aware of.
Let the sister rent the the property that the OP needs for work ??
 
That is very clever.

Is it tax planning or tax evasion?

If I own a house in Dublin and you own a house in Galway, and we house swap, while retaining ownership.

Am I supposed to declare the notional rent?

Brendan
 
OP needs to clarify, but my understanding from the post is:

OP owns property in BallyGoBackwards. Sibling is paying rent to OP on a house sharing arrangement, sibling does not have sole occupancy.

OP is paying rent in BallyGoForwards for accomodation for work reasons. OP does not own a second property in BallyGoForwards.

I took it from the OP that this was a temporary arrangement; though OP did not use that expression.

It would be my belief if OP meets the conditions I outlined, rent a room can be applied.

Note: if the revenue condition was that to avail of rent a room you must own or occupy or have access to only one roof over your head, why add the explanation that the qualifying home is where your friends & family expect to find you?

Perhaps the OP can clarify.
 
Thirsty said:
Note: if the revenue condition was that to avail of rent a room you must own or occupy or have access to only one roof over your head, why add the explanation that the qualifying home is where your friends & family expect to find you?
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Eh, because that’s not the Revenue condition.

Again, to avail of the relief the property must be the OP’s sole or main residence for most of the year, where his friends would expect to find him. There is nothing in the rules about owning, occupying or having access to only one property.

So, in addition to inventing facts, you are now inventing rules!
 
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Sarenco said:
Eh, because that’s not the Revenue condition.

Again, to avail of the relief the property must be the OP’s sole or main residence for most of the year, where his friends would expect to find him. There is nothing in the rules about owning, occupying or having access to only one property.
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I agree, there is nothing in the rules about an owner having access to more than one property.

So the OP making use of temporary accomodation for work reasons is not, I believe, contrary to the spirit of the rent-a-room relief.
 
Thirsty said:
So the OP making use of temporary accomodation for work reasons is not, I believe, contrary to the spirit of the rent-a-room relief.
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And we’re back to inventing facts.

How do you know the OP is “making use of temporary accommodation”?

Once again, all that matters is whether the rented house is the OP’s sole or main residence for most of the year, where his friends would expect to find him.
 
Brendan Burgess said:
If I own a house in Dublin and you own a house in Galway, and we house swap, while retaining ownership.

Am I supposed to declare the notional rent?
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I wouldn't have a clue Brendan, and I hazard a guess that even Revenue wouldn't have a simple answer to it either.

But in relation to the OPs first question, Yes they most definitely are required to make a tax return for the rental income
This is basic tax knowledge and the OP should know this!!
The second question regarding the rent a room scheme also I believe needs a yearly tax return to declare this non taxable income
and this is where they might get a nasty surprise if revenue have cause to investigate the declarations on the tax return,
in my opinion and I feel the majority of people would agree that the current setup the OP has with his sister would not pass the requirements that are needed to avail of the "rent a room scheme".
My work around on the other hand removes the taxable income (rent) from the equation if the sister rents a property for her brother
Is this taxable, yes I think it is through gift tax between siblings but I would think/hope (maybe naively) revenue would turn a blind eye to it in the short term but It's a long time since I've dealt with revenue so not in any way sure how they would view this arrangement
Another option is the sister rents a room in the OPs rented property and between them they occupy OPs house to satisfy insurance requirements
 
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