Rent a Room Relief - devil in the detail

E30chick said:
I want to murder my tenant when he cooks.....
It's great money but mother of god it tests your sanity at times!
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I hear ya. Mine are nice but seperate... but the washing machine, iron, tumbledryer, sky, wifi questions.....
 
DannyBoyD said:
So he eats at the top table with you?
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I see what you did there I like it!
He does indeed, he is a trainee chef so he cooks for us the odd time so I shouldn't really complain!
Just need to beat it into him how to use the floor steamer after himself lol!!
 
ThisisMax said:
I hear ya. Mine are nice but seperate... but the washing machine, iron, tumbledryer, sky, wifi questions.....
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I do the washing so that removes the washing conundrum.... I run a busy house so best off one person is in charge of that part of things, means the machine is free when I need it, everybody has fresh dry clothes and then I can plan when the air dryers are out and not taking up space on days when I have planned to have people over etc.
 
WizardDr said:
What does this mean?

"rent-a-room relief does not apply to payments received either directly or indirectly by an individual, or a person connected with the individual, for accommodation provided in the family home where that individual is an office holder or employee of the person making the payment or of a person connected with the payer"
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I note that Simon Harris TD referred to this deviancy today and it may be addressed.

You heard it here first.
 
What happens if a married couple both own the house and file separate taxes? Can you each rent out a room and claim it as under €14k each?
 
APoster said:
What happens if a married couple both own the house and file separate taxes? Can you each rent out a room and claim it as under €14k each?
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Don't think so. Emphasis is mine.
5. Limit on amount to be exempted

5.1 Exempt amount

Since 1 January 2017, the annual limit on exempt income for rent-a-room relief is€14,000. For 2015 and 2016 it was €12,000 and for 2008 to 2014 it was €10,000. Where more than one individual is entitled to the income, the limit is divided equally between them.
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From "Further Guidance" Part 07-01-32 here:

Rent-a-Room Relief

This page overviews rent a room relief.
www.revenue.ie www.revenue.ie
 
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Does anyone know if i rent a room in my private residence and i elect to pay the electricity and oil myself out of my own account will my payment be separate from the 14k per annum tax free under rent a room scheme and thus not liable for tax. Yes or No.Thanks.
 
DK123 said:
Does anyone know if i rent a room in my private residence and i elect to pay the electricity and oil myself out of my own account will my payment be separate from the 14k per annum tax free under rent a room scheme and thus not liable for tax. Yes or No.Thanks.
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I really don't get your question.
For the rent a room scheme to apply, the maximum amount you can receive from your licensee(s) is 14k. So if you pay the utilities and receive a maximum of 14k, you are fine.
 
Hi, does anybody has an experience of amending tax return to include rent a room relief income?
By way of a background, I am a sole owner of the house (2 bed) and living with my partner. My partner is contributing to the cost of the mortgage, management fees etc. I now understand that as we are not married payments made by my partner should have been recorded as my income and disclosed in my tax return which did not happen. The payments made by my partner are way below the rent a room threshold. This happened for the last 5 years. What should I do? I understand there would be no additional tax due but can revenue apply a penalty for not disclosing the income in prior years? Any comments would be much appreciated.
 
AJ1950 said:
Hi, does anybody has an experience of amending tax return to include rent a room relief income?
By way of a background, I am a sole owner of the house (2 bed) and living with my partner. My partner is contributing to the cost of the mortgage, management fees etc. I now understand that as we are not married payments made by my partner should have been recorded as my income and disclosed in my tax return which did not happen. The payments made by my partner are way below the rent a room threshold. This happened for the last 5 years. What should I do? I understand there would be no additional tax due but can revenue apply a penalty for not disclosing the income in prior years? Any comments would be much appreciated.
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1. That doesn't sound like a rent a room arrangement.

2. Your partner's contributions to household costs don't sound at all like income receivable by you.

3. Never say never but I cannot conceive a situation where Revenue have any interest in applying tax or penalities on foot of the situation you've outlined.
 
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I would appreciate any help about what is allowed to claim under RAR.My house qualifies and is divided into 2 separate dwellings. If the washing machine, tumble dryer etc break down and need replacing while there are people there or if painting is needed to their part of the house can I deduct these expenses from the income received for my tax return.
 
T McGibney said:
1. That doesn't sound like a rent a room arrangement.

2. Your partner's contributions to household costs don't sound at all like income receivable by you.

3. Never say never but I cannot conceive a situation where Revenue have any interest in applying tax or penalities on foot of the situation you've outlined.
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Thank you for your answer. I came across a post outlining similar situation and the advice was to disclose the partners contributions as income but I can’f find any Revenue guidelines confirming that. All guidance seems to be focused on taxes at death of a partner or breakage of the cohabiting relationship only. I am worried sick as I can’t find a definitive answer what our position is.
 
Aurora said:
I would appreciate any help about what is allowed to claim under RAR.My house qualifies and is divided into 2 separate dwellings. If the washing machine, tumble dryer etc break down and need replacing while there are people there or if painting is needed to their part of the house can I deduct these expenses from the income received for my tax return.
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The whole point of the Rent-a-Room benefit is that the 14k per annum is tax free.
 
AJ1950 said:
Thank you for your answer. I came across a post outlining similar situation and the advice was to disclose the partners contributions as income but I can’f find any Revenue guidelines confirming that. All guidance seems to be focused on taxes at death of a partner or breakage of the cohabiting relationship only. I am worried sick as I can’t find a definitive answer what our position is.
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Crazy advice.

This shouldn't be worrying you in the slightest.
 
Thank you Danny Boy2. Yes ,sorry I should have said that if I exceed the limit can I then deduct tose expenses to bring it in line with the 14K.
 
Aurora said:
Thank you Danny Boy2. Yes ,sorry I should have said that if I exceed the limit can I then deduct tose expenses to bring it in line with the 14K.
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If the income before expenses is over 14k, you're taxable on the full income after expenses.
 
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