Hi
Son is in Limerick in college and we are thinking of buying place there. Nothing concrete yet but scenario could be something like this:
Buy 3 bedroom house and son will have one bedroom.
We will rent other 2 bedrooms out at market rate for the rooms.
We will flip shortly after son and / or his siblings graduate so max 10 year investment.
Let's make some assumptions:
1. Rent previously was €1500 p.m. before our purchase.
2. We get €450 for each room rented = €900 p.m.
3. We will not charge son rent.
4. We will declare the income of €900 p.m. to Revenue.
Questions
1. What rent do we declare to Tenancy Board - €900 presumably?
2. When we go to sell are we not effectively devaluing the value of the house with a rent considerably lower than the market rent?
3. Is there anyway that we can still declare a rent to the Tenancy board of the true market rent i.e. €1500 and yet only declare the
real rent €900 to Revenue?
4. Are there any tax implications of allowing son have tax free rent?
Thoughts / advice welcome.
Thanks
Nick
Son is in Limerick in college and we are thinking of buying place there. Nothing concrete yet but scenario could be something like this:
Buy 3 bedroom house and son will have one bedroom.
We will rent other 2 bedrooms out at market rate for the rooms.
We will flip shortly after son and / or his siblings graduate so max 10 year investment.
Let's make some assumptions:
1. Rent previously was €1500 p.m. before our purchase.
2. We get €450 for each room rented = €900 p.m.
3. We will not charge son rent.
4. We will declare the income of €900 p.m. to Revenue.
Questions
1. What rent do we declare to Tenancy Board - €900 presumably?
2. When we go to sell are we not effectively devaluing the value of the house with a rent considerably lower than the market rent?
3. Is there anyway that we can still declare a rent to the Tenancy board of the true market rent i.e. €1500 and yet only declare the
real rent €900 to Revenue?
4. Are there any tax implications of allowing son have tax free rent?
Thoughts / advice welcome.
Thanks
Nick