should i sell or hold out?

Potential tenants are also likely to apply for rent relief so if you are not registered with the PRTB and haven't been paying your tax you are liable to land yourselves in very, very hot water!
 
Forgot to mention (although it will be mentioned in those threads I linked to) that, in order to claim mortgage interest against rental income, you *must* register with the PRTB.
 
actually stupidly we've never applied for interest relief. And i never meant to imply that we wern't going to tell the tax man it was just a question.

Ok maybe i didn't ask properly earlier but what i meant is..... if we go by your figures that i rent out the house at 1100, interest is 800 so that leave the 300 i'm gtting from renting out and 100 i have to pay towards the mortgage. So from that 300 a month that the tennents are paying ( i'm assuming the 300 is what i'll be taxed on, not the 100 i have to pay) how much of the 300 do i have to pay tax on is it like 20%/ 30% ect.
 
samanthajane said:
actually stupidly we've never applied for interest relief. And i never meant to imply that we wern't going to tell the tax man it was just a question.

Ok maybe i didn't ask properly earlier but what i meant is..... if we go by your figures that i rent out the house at 1100, interest is 800 so that leave the 300 i'm gtting from renting out and 100 i have to pay towards the mortgage. So from that 300 a month that the tennents are paying ( i'm assuming the 300 is what i'll be taxed on, not the 100 i have to pay) how much of the 300 do i have to pay tax on is it like 20%/ 30% ect.
Click to expand...

Did you read the other threads?

If your profit is 300 a month, you pay tax on 100% of that.
 
yeah i'm searching through them at the moment. Oh right so i have to pay all of the 300 a month to mr. tax man. I just thought that if my profit was 300 a month i would only pay tax of around 20% meaning i would only have to pay 60 a month. ( if it was 20% that is, maybe i'm geting this all wrong i just though i had read that somewhere) So if someone has no mortgage at all and there renting out there house all of it goes to the tax man......that just doesn't seem right to me??? I dont think i asked properly or understand what your saying. Sorry i'm not good on all of this
 
samanthajane said:
yeah i'm searching through them at the moment. Oh right so i have to pay all of the 300 a month to mr. tax man. I just thought that if my profit was 300 a month i would only pay tax of around 20% meaning i would only have to pay 60 a month. ( if it was 20% that is, maybe i'm geting this all wrong i just though i had read that somewhere) So if someone has no mortgage at all and there renting out there house all of it goes to the tax man......that just doesn't seem right to me??? I dont think i asked properly or understand what your saying. Sorry i'm not good on all of this
Click to expand...

Your question was "how much of the 300 do i have to pay tax on" -answer: all of it

You pay tax at your highest rate (20% or 41% depending on what tax bracket you are in - plus levy) on the profit.
 
ok sorry i worded it wrong.... what i should of said was how much tax would i pay on 300. And i didn't realise the tax rate for property was the same as your tax bracket, i thought there might be a set tax rate for property. But thanks for clearing that up for me. Sorry i sounded a bit thick lol to me it made perfect sense what i was asking.
 
Don't be putting yourself down Sam, it's your first venture into it so you can hardly know everything straight off. If you pay tax at 41% on the 300, that's 123 euro.
 
i was afraid to ask anything else paddyw lol but since your here and your so nice.... i'm in london at the moment and currently dont pay any tax at all and when i move back i'm going to be living in newry so i still wont pay any irish tax. Would that mean the the ex only has to pay tax on half of the 300? Cause at the moment he's not paying any tax either lol i know it sounds bad but just to clear everything up he not actually getting a wage at the moment from the business. What money he has from the business is just about paying these expenses let alone himself actually getting a wage. No wonder he's having problems paying the mortgage. thanks for being so nice x
 
Tax will have to be paid on all of the 300 Sam. He's not paying any tax at all? That's not good and he is going to have to be very careful on that. Best get his affairs in order asap as if he is evading tax, the punishments could get very severe. I do not know the full ins and outs, so I will not venture to guess what they may be, but others may be able to let you know the full extent. He's heading for trouble though if that's how things stand right now.

And being nice costs nothing, so I like to give it away for free :D
 
it's not that he's evading tax, he's not earning anything to be taxed on. Cause he's self employed he doesn't get pay slips and all that he has to self asses himself at the end of his tax year. It's only the past 5-6 months that he's had the business. We had a business together and when we split we closed down our joint business and he set up another business in a different name. So far since he first did this he's not taken a single cent for himself as in a wage. All the money he has coming in from the business goes to paying for things that are related to the business not himself personally. All the business tax, vat and all that is ok ( so he told me- but i wouldn't know 100% i have no access to this business it's nothing to do with me anymore) So at the end of the year even if he says he got 300 a month from the house i doubt that will work out that he'll have to pay any tax anyway. I'm pretty sure your tax free allowance is more that 3600 a year. And if i still have to decalre part of it myself as well then that lowers it aswell cause i'm not earning or paying any thing in ireland either. Or am i just hoping for 2 much here lol
 
Ah right ok, I misunderstood your post, apologies. I'll leave it to the experts on the tax matters for now though, don't want to be getting out of my depth! Hope it all works out for you Sam, pity your ex doesn't show as much concern and willingness to sort the problem as you do, if he did, it might well have been solved already. Best of luck.
 
ah too be honest the tax matters dont bother me that much like i said the business side of things has nothing to do with me. At least from here i have managed to find out some new and helpful information about the house which is what all this was in the first place. Either way if i have to pay the tax it's the least of my problems, i'm more worried about the actual mortgage repayments and not losing the house or going into debt!! Thank you so much for all your help and advice i'm very grateful
 
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