Selling rented property. No tax paid on rent.

Status
Not open for further replies.
As per Brendans post if you weren't registered for RTB you can't write off interest...however you can register the tenancy now and pay the late fee and then you can write off interest.
 
Thank you so much for all your kind replies. And yes, an elephant IS eaten one bite at a time. So true

I was panicking but there is no point. Better just get on with the job in hand. I have most receipts or else the letting company will have them. And I will contact the bank too. All great advice.

My best friend is an accountant and she said she will help me. She told me all the same stuff you did, so you know your stuff! But thank you for the offer of a number.

And thanks to anyone else who ripped in with replies. Much appreciated.
 
That's brilliant. Thanks so much. Yes I am with the PTRB. I'll get it sorted. Thanks for you help.
 
Hi Brendan

There's a fair bit of scaremongering in that article. "Increased risk of a Revenue audit" is one example.

In almost all arrears cases I've seen and assisted in having resolved, the taxpayer has ended up pleasantly surprised that the process wasn't as bad as they had expected at the outset.
 
Goodness me this is a rather cavalier attitude to so many things.

Your first mistake was telling the bank what you were at, and your second mistake was thinking any of us believe you 'forgot' to pay taxes.

Clearly you seem to own a property. I suppose your not paying property tax either? How long have you owned this property. Do you own it without a mortgage.

And what exactly is it you need a mortgage for?

I'd imagine the bank might, just might be concerned about your attitude to taxes, your lack of a tax clearance certificate, your back taxes, your interest on taxes, penalties on the taxes and interest ................ Now is such a person a good solid citizen who will pay their mortgage diligently. LOL (to use your parlance)
 
Knuttell said:
Curious as to how this came up, I've gotten mortgages and remortgages quite a few times and never been asked for tax clearance cert.
Click to expand...
In the past they did not ask, and during the Celtic Tiger they actually didn't want to know. But they are much stricter now. One of our mortgages was a property loan and every year I had to state my tax affairs were in order, not sure if they asked for a tax clearance cert. But I did need it for HAP.
 
The letting agency costs are also a deduction. The more expenses you have the better.

Not sure about using a friend, instead of paying a professional. Someone who does this for a living. Does your friend know this involves 5 tax years.

There is no way you should be looking for a mortgage until you've sorted out your taxes. Also why is the rent static? Have you never increased it?
 
Bronte said:
Not sure about using a friend, instead of paying a professional. Someone who does this for a living. Does your friend know this involves 5 tax years.
Click to expand...
Well said.

I mentioned scaremongering above but the other side of this problem is that if it's mishandled, the OP could end up being criminally prosecuted.

If I were them, I'd steer clear of friends and get the best advice they can muster.

This is not a time for messing around.
 
Not only that, you shouldn't expect friends to do professional work for free. Plus as you said this is serious. You want to have everything correct from the get go of contacting revenue. The friend has no skin in the game if they are 'helping out'. And based on the OP's details so far (no receipts) this is a mess and worse not a mere fixing of one tax year.

They are actually lucky the bank refused them. So they get this sorted now before it ends up 10 or 20 years down the line.
 
Important to remember as well is that you are only 3 years in arrears for the tax liability as 2023 is not due to Oct this year, assuming your 5 years is accurate. Your liabilty is not huge but as advised by good contributors above, use a professional and let them contact and deal with revenue (Their fees are tax-deductable)
 
Thank you so much. That makes things feel a little less scary.
 
Who said she is doing this for free? She is a qualified accountant and I insisted on paying the going rate.

You'd swear I killed someone the way you are going on. I didn't pay tax when I should, I accept that and am making steps to rectify that.
 
DannyBoyD said:
Indeed.

But the rest of us did; so you have to accept that we get a bit cheesed off at those who didn't & possibly wouldn't but for the fact that your bank called you out on it.
Click to expand...
I don't have to accept anything of the sort. I won't be judged by you or anyone else on the Internet. Not when I was looking for advice.
 
Status
Not open for further replies.
Menu
Log in
Register