rental income

H

Hughdublin

Guest
Can someone please help:
I have a house rented out since April 04 (this year) . I want to fill out my tax returns for this year . When do I need to pay premiminary tax on the rental income I have received from April until Now. And Then when will I need to pay the Full tax .



I do plan to talk to an accountant soon but just wanted some feedback.

Thank you.
 
Anything useful in the Property Investment FAQ - in particular the Revenue's Guide to Rental Income?


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Thanks for the quick reply . yes I have been through all that documentation before . It doesnt say when the tax is due though . It goes into what is allowed as a deductible expense etc .
 
Hugh:

If you are generally a PAYE fellow and you derive a substantial amount of your income from that source and this renting is merely incidental (about less than 10%) then relax.

If you lived in this house during 2004 it might qualify for 'Rent a Room' if the total rent and all payments to you is less than €7500 per year.

That said, you may have a Case V Rental Income. Basically against the Rent you can set all related expenses including interest and a 'writing down allowance' for furniture ..and there is a list ..


Relax
 
Dr wizard - Thanks.

I lived in the house until March ish and then moved into a new apartment which I purchased . I'm not so sure about availing of a rent a room relief seeing that I am not living in the house and it is not my PPR . The house is completely rented out .

Question : Are you saying that I can avail of the rent a room say from Jan to December (as I was in the house from Jan to March) ???

I am a PAYE worker but I want to met my tax liabilities at the correct time and in the correct manner .

I am fairly sure that I dont have to pay any tax until 2005 but I just want to clarify that .
 
One of the problems Hugh is where you get very specific you may not get the answer you like.

The Rent a Room applies to an 'occupier' and the Revenues guide says '..during the year of assessment..". This says nothing about the full year. If you ask a few Revenue folk they may all give you a different answer.

The key points:
- is the total rent and payments received below €7,620 (once you are above this it is out anyway).
- If you wanted to be precise (and maybe ahead of the Law) you could time apportion the rent between the times you occupied and the times you did not.
- Against the second stream you have a range of deductions.

You would have to file a return for 2004 in 2005.
 
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