Property Rented - Out of State - Tax due ?

L

LouthMan

Guest
Hi

I rented out my own apartment for 7 months in Dublin 15 while I was working in Belfast. The people in the apartment got a bill for 20% of the rent because they where meant to hold this back. Can i ask the revenue to cancel their bill and send me one, It is my only property . I have a mortgage on this and pay a lot of interest, can i set this off the tax ?

I collected around 9K for 2008 and 2.5K for 2009. Any advice would be great.

Thanks
 
Firstly, tenants are obliged to pay rent net of standard rate tax to non-resident landlords, and pay the tax over to the Revenue.

To receive the gross rent, the landlord needs to appoint an Irish resident landlord to act on their behalf - I assume you did not do that.

To get tax relief in respect of mortgage interest you should register with the PRTB - did you do that?

I would suggest that you take professional advice to sort this out.
 
Louth - you need to contact revenue to firstly sort out the current bill.

Then you will need to register a "collection agent". This can be a family member who will be responsible for the rental income and the tax liability. In general terms they will be just signing the tax return as you will have completed the work on it.

I is imprtant thought that you are registered with the PRTB.

If you have any questions you can contact me - I am tax consultant/accountant
 
Hi Ned_ie,

Is it best to contact the revenue before you start to rent and are there any other things you shoud do if you are out of state ?

Thanks
 
Hi just to be a bit clearer on the subject for you, if you dont register with the prtb you cannot offset the interest on your mortgage against the rental income and will be liable for income tax on the gross rental income less any allowable expenses. You also have a potential liablity to income tax on your income in northern ireland although you will be able to claim double taxation relief if you do, so you really do need to contact a tax advisor. Check out the website [broken link removed]
 
My maybe faulty understanding is that if you are still tax resident in Ireland things should work as normal. In order to be not tax resident in Ireland...you have to be working abroad for 3 years or something.

I could be wide of the mark here maybe
Just trying to decipher the revenue.ie ...residency info.
 
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