My mother died this year and left the house “of which she was sole owner” to myself and my two brothers. We now have an offer to rent the house to a corporation for their contractors.
I live abroad, so does one other brother.
The rental income will be 21600 annually Split equally three ways.
from reading online If the amount of profit is over 5000 you are a chargeable person. My profit will be 7200 I assume, unless there are other things to factor in such as property tax.
My questions surround am I likely to pay 20% or 40% tax on the rental income/profit.
as I live abroad I have no other income from Ireland.
In regard to my brother living in Ireland what kind of conditions would be met to make a person available for the higher rate of 40%?
Does it sound like we would be in different tax bands and so I should organize the share of the rent to be paid to each of our brothers accounts or, as has being suggested By my brother, we have the total amount paid to our father and he divided the money out while keeping 40% to settle tax. It doesn’t sound like a good idea to me.
appreciate this question may need to be answered by an accountant but any help or pointers I’d be grateful for..
I live abroad, so does one other brother.
The rental income will be 21600 annually Split equally three ways.
from reading online If the amount of profit is over 5000 you are a chargeable person. My profit will be 7200 I assume, unless there are other things to factor in such as property tax.
My questions surround am I likely to pay 20% or 40% tax on the rental income/profit.
as I live abroad I have no other income from Ireland.
In regard to my brother living in Ireland what kind of conditions would be met to make a person available for the higher rate of 40%?
Does it sound like we would be in different tax bands and so I should organize the share of the rent to be paid to each of our brothers accounts or, as has being suggested By my brother, we have the total amount paid to our father and he divided the money out while keeping 40% to settle tax. It doesn’t sound like a good idea to me.
appreciate this question may need to be answered by an accountant but any help or pointers I’d be grateful for..