Rent Allowance

Hi All,

Is it possible for me to claim rent allowance whilst living at home? I've paid my folks a monthly rent for the last three years. I've no records etc. Is it possible to claim allowance for this? It would be ideal coming up to xmas!

Thanks A great deal.

Best, Gary

Can the Rent Tax Credit be claimed if the Tenant is living with their parents?

Rent relief can be claimed where a child is required to pay rent to their parents. The amounts paid however must be Rent as the term would normally be understood and not merely a contribution towards the upkeep of the household. Since 2007 where the Rent Tax Credit is claimed by a child paying rent to their parents, the parents will not be allowed to claim the Rent a Room exemption (this is an exemption allowed to landlords who Rent a Room out of their Principal Private Residence and who's Gross Rental Income from this does not exceed €10,000 in 2008 (€7,620 in 2007)). This means that the parent will need to declare their rental income on their annual Tax Return and pay any Income Tax arising.



I have noted the above but I am not sure of the implications. Is it worth my while trying to claim as my folks will get taxed on the income received.

Thanks again,

Gary