Tax query

Hi

My friend has three rental properties which I manage for him, collect the rent, carry out repairs etc. for €200 a month, am I liable to tax on this? What tax schedule would it fall under?

My friend is also wondering if he can deduct the €2400 from his annual case V income?

Many thanks

fobster said:

Hi

My friend has three rental properties which I manage for him, collect the rent, carry out repairs etc. for €200 a month, am I liable to tax on this? What tax schedule would it fall under?

My friend is also wondering if he can deduct the €2400 from his annual case V income?

Many thanks

Click to expand...

Yes, of course you are liable to tax on this income.

I'd tax it under Case I, to allow you reduce the income by any related expenses for tax purposes.

Your friend can take a deduction for the €2,400.

The one risk area is this is that the Revenue might try to argue that you are actually an employee of your friend. But, if you can manage the properties on your own time, get someone else to do work for you if you wish, vary your hours etc, you should be ok on this.

Is there a minimum limit to assessable case I income after expenses have been deducted?

fobster said:

Is there a minimum limit to assessable case I income after expenses have been deducted?

Click to expand...

No,

Ok thanks for your help.

Edit: Another question, my friend paid fees registering the properties with the PRTB, are these fees deductible from rental income?

Thanks again

Yes

See [broken link removed] for what is allowed to be deducted. Although the fees payable to PRTB is not mentioned specifically it is covered under the heading "are incurred wholly and exclusively for business purposes"