Rental Income Tax Return

M

MCC

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Just a quick question....

I rented out my PPR last July (2005) as I moved job to a different location.

Is my first tax return due this October or the following one (2006)?

Roughly how much can I expect to pay an accountant?

Thanks in advance.
 
Your tax return is due October 2006, but you should make a preliminary tax payment by October 31st this year.

I've no idea how much you can expect to pay an accountant.
 
MCC,

Have you done a self assessment tax return before? If you haven't then you will not have to pay preliminary tax this year. By October (31st I think!) of 2006 you would have to pay your tax due for 2005 and also preliminary tax for 2006. NOTE. This is only if you haven't done a self assessment previously.

Revenue have a reasonable approach for people making self assessments for first time and that is why you are not expected to pay preliminary tax the first year.

If your rental income profit is small then an adjustment of your paye credits can be made rather than you doing a self assesment.

I don't believe you really need an accountant if you are talking about a straight forward house rental. Revenue have a guide to Rental Income called IT70 and a guide to self assessment IT10. These guides pretty much have everything you need to know to calculate your rent profit (taxable amount)

I'm doing up a rental account in excel at the moment for my tax return, I should have it complete within the next couple of weeks. You're welcome to a copy of it, if you like. There are probably examples of rent accounts on other AAM threads as well
 
Yeah, as far as I am aware (99.5% certain) there is no need to do anything this year as regards payments. You can of course get your affaris on order, by valuing all fixtures and fittings etc in the house, maintaining records of expenditures etc.

The rationale behind no preliminary tax being due just yet is that according to preliminary tax rules you can pay 90% of the previous year's liability, which in your case is 0. Although you may not actually qualify for self assessment next year anyway, all you may have to do is fill in a form 12 (see other discussions on AAM), in any case, next October will be your deadline.
 
First things first:

This looks to me like a 'rent a room' scheme for 2005.

If within limits, to be sure to be sure, stay over one night before dec 31/
 
Thanks for all your replies.

DonKing,
Thanks for information. I never did a self assessment before. I had been checking out the allowances etc. so now that I have more time I would like to try and do the returns myself.

I'd really appreciate the rental account in Excel. It would be interesting to see what I can expect to pay in a year.

WizardDr. - thanks for reply. It's not a rent a room scheme...although I could end up staying there for a few nights if there is a changeover of tenants.I registered it with PRTB and lease has been signed.

MCC
 
MCC,

I'll send it to you by next Friday. I'll by running it past a buddy of mine who works in revenue.

I can't see how you can send attachments when you send a private message. Perhaps you could send me your e-mail address to me privately?

That's great now that I have a deadline, I'll have to finish this week. I've been coming up to my attic office every night this week to go through receipts and all I've been doing is surfing forums like AAM!
 
could be Rent a Room 'cos:

- it was occupied as such until July 2005;
- it would some rent if it exceeded the €7600 figure for a full year;
- his absence is for work (same exemption for CGT);
- he can make sure of it if he stays over before dec 31.

But .. put it in as a rental if you like. You wont find the Revenue helpful in any event.
 
Thanks for the clarification.

But .. put it in as a rental if you like. You wont find the Revenue helpful in any event.
Click to expand...
I don't think that there is any discretion in this matter - it's either an owner occupier rent a room situation or it's investor rental property situation. It's one or the other and not for the individual to decide.
 
No this is definitely one that is a grey area as its in transition. If he has elected to call another property in Ireland his PPR, this would shoot this down.

To me it would appear he has a potential R-A-R situation.
 
Can you really "elect" to call a particular property your PPR? I thought that, where there was any doubt, Revenue would, if necessary, make a decision which was out of the hands of the individual?
 
Reference a comment contained in one of these replies


"- his absence is for work (same exemption for CGT);


I have worked aborad for my Irish employer for a number of years. I am paid from Ireland and taxed under the Irish PASYE system, no problem here.

I have my house rented and I declare the rental icome for tax purpsoe after capital allowances etc.

Is there some other exemption (same as CGT) that I shoudo be aware of for the treatment of PPR rental income where you have to leave home for work purposes. ?????
 
What I was referring to specifically was a situation where during the tax year when the Irish property clearly was the PPR, then I feel the first years gross rent if it is below the €7600 (approx) limit could be argued (strongly) to be Rent a Room for that year at any rate.

The next matter is whether the annual rental (gross) is below €7600. If it is above this, then rent a room is irrelevant. If its below it, then the question arises whether the Revenue definition of a principal private residence is defined wide enough to include a foreign residence when there is an absence for work. I am not sure on this point, as in I would have to read up on it!

[Mind you need to understand the deviousness of the Revenue mindset, when all those rich Eastern Europeans will have to pay stamp duty in full if they even owned a shed in their own country. Marvellous example of their mindless manky thinking! ]
 
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