tax and non resident

Hi asking for a friend who is irish & resides in USA for 20yrs. He has has been advised that he should have paid tax on income of €1200 for grazing of Land. A neighbour grazes the land each year and then gives his dad cheque for €1200. His question is how does he get his PPSN reactivated and does he just declare income of €1200 on a form 11 tax return and then pay revenue the tax usc prsi on €1200. would he be entitled to any portion of the personal tax credit. Any advise would be appreciated

He simply registers with Revenue, files a tax return annually and pays 20% income tax on the rental profit. There is no PRSI as long as he remains non-resident and the income is insufficient to attract USC.

He may have a tax liability on it in the US, in which case the Irish liability will normally be offsettable.

Thank you

On a seperate issue His dad has right of residence & his brother also lives n the home. Some 25 yrs ago the house & land was valued at a current value of €50,000 and transferred to my friends name so that his parents qualified for non contributory pension
Is my friend correct that cgt is only tax due and that cgt is due only if he disposes of the house & land ie sells it or gives it to his brother.
Current land value is €150k plus €120k for the house. Cgt due on €220,000@33% (ie €270,000 less €50,000.)

The purchase cost is indexed up - the uplift depends on the date of acquisation

Presumably the LPT tax has been paid annually

Yes Lpt paid in full. Acquired 1990

jpd said:

The purchase cost is indexed up

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