Registering investment property for tax purposes

J

JKT

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Bought an investment property in 2003 and renting it out most of the time since. Because the total rent received for each year was always less than the total expenses which includes mortgage interest relief, can anyone advise if I still need to declare this for tax purposes? If so, how do I go about doing this?
 
You should have done this all along despite the loss. Losses are allowed to be carried forward against future profits and you should have an annual summary of this.

I hope it has been registered with PRTB as if it has not, the mortgage interest is NOT allowable against rental income for tax purposes. ( see www.prtb.ie FAQ's)

If your other income is all PAYE then you can ( once profit small or a loss) file on Form 12 along with your normal PAYE details. However depending on the case some taxpayers may have to file Form 11.

Remember also the new €200 levy, payable before 30/09/09. www.nppr.ie
 
Thanks Graham. Yes, lucky enough, its registered with PRTB.

BTW, what is the difference between Form 11 and form 12?

Is there any issue submitting these forms now for years gone by?
 
Form 11 is usually for those with material non-PAYE income. Basically the same forms used by any self-employed people.

Form 12 is for those with substantially most of their income from PAYE and with perhaps small other income, dividends or small amount of rent. Given that your rental property has been tax loss making so far, you could probably use F12. Also, as it is a loss, no tax charge would have arisen. ( assuming all other income & claims for the relevant years are in order.)

What I think you could do is construct Income / Expenditure for all years. Get cumulative loss forward to date. File 2008 with actual 2008 figures and note the cumulative loss forward. Mention in cover note that you realise that you should have filed but given the loss will they require returns or can you start the accumulated loss at 2008 and go from there forward. Revenue are often loathe to create paperwork for no result and if it is clear that the property was tax lossmaking up to 2008 they may accept this approach. However, if they require reutrns to be filed you will have to file them.

Bear in mind, that if your other affairs are in order there is no problem but if you have under/overpaid in years 2003 on, you would be liable for any underpayment but you would only be given credit for any overpayments from 2005 on ( under the 4 year rule )
 
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