tax rtns for investment prop

B

bob24

Registered User
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34
Hi,

I bought an investment property last year and it has been rented out since last Sept. As this is my first time having to submit tax returns I'd like to get help from a tax accountant, would anyone be able to recommend one in the north Dublin city area and any idea of the cost?

Also what is the closing date for tax returns?

Thanks
 
Ardman,
Fancy telling us who charged you €220? I'm being quoted over €500 (in wexford)
 
Surely for one simple invesment proerty you could complete the tax return form yourself?

Gross rental income

less

mortgage interest
maintenance expenses
letting expenses

= net taxable rental income

Then just add this to your normal income and tax it.
 
Protocol said:
Surely for one simple invesment proerty you could complete the tax return form yourself?

Gross rental income

less

mortgage interest
maintenance expenses
letting expenses

= net taxable rental income

Then just add this to your normal income and tax it.
Click to expand...

You might save accountancy fees by following the above steps but you will, in 99% of cases, also end up paying significantly more tax than you need to.
 
Thanks for all the info, its been very useful..

I imagine it is pretty easy to do the tax returns yourself but for the first year I thought it would be better to get prof advise and make sure that I'm claiming relief on everything I'm entitled to.

One more question incase anyone can advise. We remortgaged our PPR to raise the money for deposit and SD of the investment property. Can we also get tax relief on this top up part of PPR mortgage as it was used to finance the investment property. DO you need some sort of proof that the top up was used for this purpose... on the top up mortgage application we said the purpose was for renovation for our PPR (as advised by the broker)... could this cause an problem??
 
bob24 said:
Thanks for all the info, its been very useful..

I imagine it is pretty easy to do the tax returns yourself but for the first year I thought it would be better to get prof advise and make sure that I'm claiming relief on everything I'm entitled to.

One more question incase anyone can advise. We remortgaged our PPR to raise the money for deposit and SD of the investment property. Can we also get tax relief on this top up part of PPR mortgage as it was used to finance the investment property. DO you need some sort of proof that the top up was used for this purpose... on the top up mortgage application we said the purpose was for renovation for our PPR (as advised by the broker)... could this cause an problem??
Click to expand...

No but you would need to be able, if asked, to demonstrate that the money from the remortgage went to the investment property. Simple bank statements would do the trick.

The remortagaged element of the interest is allowable. Make sure you have not already got Tax Relief at Source on it (You shouldn't have). Accountant's fees for this kind of work should not amount to more than €363 subject to all other stuff being normal. I agree with previous poster in that we find that people who try to do this themselves often (not always) end up making a hash of it and usually either under pay or over pay tax. Either way is extremely costly. The only way is the right way! Did you register with the PRTB?
 
ubiquitous said:
You might save accountancy fees by following the above steps but you will, in 99% of cases, also end up paying significantly more tax than you need to.
Click to expand...

Why would you end up paying too much tax? It's not rocket science to work out your liability...plus Revenue will help you with any queries.
 
The Revenue may be very helpful - but I can guarantee you that they are not always right. Unfortunately the people you get through to on the phone tend to be junior staff, and may not be experienced enough.

Also, the Revenue do not give tax planning advice, which you would get from a tax advisor or accountant. This could well save you time and money.
 
KalEl said:
Why would you end up paying too much tax?
Click to expand...

Because Protocol's "advice" fails to cover several of the most lucrative deductions that are available.

Also, as Domo says, the Revenue never give tax planning advice. Neither do they stand over "advice" given. Where incorrect advice is given, the taxpayer may well be underpaying or overpaying tax without even knowing it, and still can be charged penalties & interest or be prosecuted even if they have done exactly what the Revenue have originally told them.
 
ubiquitous said:
Because Protocol's "advice" fails to cover several of the most lucrative deductions that are available.

Also, as Domo says, the Revenue never give tax planning advice. Neither do they stand over "advice" given. Where incorrect advice is given, the taxpayer may well be underpaying or overpaying tax without even knowing it, and still can be charged penalties & interest or be prosecuted even if they have done exactly what the Revenue have originally told them.
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Relying on the Revenue's advice is the last thing anyone should do.
1) Some revenue staff treat the system as an adversarial type process and give the minimum advice
2) Some haven't a clue
3) As already said they will not give planning advice or any alternatives
4) They wont stand over the information given
5) There are over 3,000 sections in the taxes acts.

With a very few exceptions they are often wrong, incomplete, and unhelpful. That is my and my client's experiences. I would always be polite when making queries.
 
Please note that my earlier reply was a general one.

I realise that there are many expenses/costs which can be deducted from the gross rental income. The three that I listed are just some of them.
 
I know an accountant who can prepare your tax return for c. €200. You can send me a private message if interested.
 
Do they have professional indemnity insurance? Are they regulated by any of the professional bodies? Do their customers have any comeback in the event of a complaint?

...hardly at that price.
 
I too have used a qualified accountant who charged me approx €150 to do up the calculations for an investment property added to our PAYE income. I had a lot of the work done though and didn't just hand him a bunch of receipts. PM if you want his name?
 
I find that accountants in country areas charge lower fees. Ubiq's comments of whether the accountant is qualified or has professional indemnity insurance is important. I have had to clear up massive messes where people have been represented by unqualified 'accountants'. People have had no come back against these 'tax advisors'. If qualified the accountant is regulated and his standards are subject to review by his institute. He is also subject to discipline in the event of complaints being made as well as being forced to co-operate with new accountants in the event of a client changing. Unqualified accountants are subject to zero rules and agrieved customers would have to resort to common law to get satisfaction. Be careful if dealing with these people. Come on lads - commonsense!!Would you go to a quack if you were sick?
 
simplyjoe said:
If qualified the accountant is regulated and his standards are subject to review by his institute.
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Just to clarify, a qualified accountant is only regulated and subject to standards and review procedures if they hold a current practising certificate. In general terms, only those accountants who are owners or partners of their own practices will have such a certificate.

Very few qualified accountants who are employed in industry or elsewhere will have this. As such, if an accountant working in a bank for example, does accounts or tax work on the side, their customers will not be legally protected against negligence etc unless he holds a practising certificate.
 
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