Rental Income

L

Liamos

Registered User
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A quick query. Is tax payable on rent received or rent receivable?

I have a property let out for 12 months at 950 per month, but only received 10 months rent. What do I pay tax on?

I would assume its on amount received, but a friend thinks its on the full 12 months rent.
 
Rent received. Why does your friend think that you might be taxed on income never actually received?
 
Because he says that on the Form 11, it states "Gross Rents Receivable".

I'd obviously be happier with your reply!
 
The property IS let for 12 months. My query is my rent receivable was (950 x 12) €11400. According to your posts I only pay tax on the rent I receive (950 x 10) €9500.

I still intend to try and recover the two months unpaid. Do I just pay tax on this if and when I receive it?
 
Liamos said:
The property IS let for 12 months. My query is my rent receivable was (950 x 12) €11400. According to your posts I only pay tax on the rent I receive (950 x 10) €9500.

I still intend to try and recover the two months unpaid. Do I just pay tax on this if and when I receive it?
Click to expand...

Tenant left you in the lurch?
 
No, tenant is still there. He has just fallen two months behind in paying his rent.
 
Calculate it for the revenue as if 12 months rent and pay the tax on this as you might still get the rent. If you have overpaid the tax you will get refunded if you send in your actual return for 2007 next year.
 
Tax is paid on profit from rental income on an annual basis/ calander year basis. You do not have to pay tax on profit from rental income in 2007 until 31/10/08. By then you should know what amount of rent is received for 2007.
 
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