Thinking of buying an investment property

P

pink2006

Registered User
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hi there,
am thinking of buying an investment property but just need a bit of advise am borrowing €310,000 if i rent this out and say the rental income is €12,000 how much tax do i pay and when does this tax be due ie the end of the tax year.
my parents have sold there home and have asked could they rent this property off us, is there any advantage of this, or am i still better off declaring it. also if they pay €12000 annual rent can they claim anything back off the goverment?
cheers
 
Re: Thinking of buying a investment property

I have done thanks but still a little unsure, about the impact my parents can have, is there anyway around the tax implications should my parents rent this from us, not sure if it will work to an advantage or not. I know my parents will be paying rent each month but i was wondering if there is a way around it ie. not an investment property but a member of the family living in it, maybe there isnt but no harm in asking to see if anyone as done this before.
cheers
 
Re: Thinking of buying a investment property

No-there is no advantage in your parents (or any relation) renting the property from you (from a tax perspective).
 
Re: Thinking of buying a investment property

ok that one is ruled out so? would i have to declare it, prob be caught out evenually when we sale it so prob wouldnt work either.
in relation to the tax credit for my parents do you know how much they would get if the annual rental income is €12,000. my father doesnt work has heart problems but my mother works,
cheers
 
You should consider tax incentive student accomodation in some towns / cities around the country....they are tax incentive and the management company takes care of the lettings / hassle. You can also get a good 3 bedroom / 3 bathroom one for less than € 300,000
 
I had posted a thread about tax credits for my parents should they rent our house out does anyone know how much they would get, also when does the tax be due to the revenue on the rented property is it every year or every two years,
thanks
 
Is there any point in examining the possibility of the parents 'gifting' €6,000 per annum and paying rent of €6,000?
 
am not sure what that means?????

oh i was on the revenue website and was looking in to the rent credits for my parents it states that they are allowed have a tax credit of €6600 for a married couple once over 55, does this mean that 20% will be deducted off this and the balance will be added onto my mothers taz credits, seems very high doesnt it can someone enlighten me please?????

also the tax return does any one know what that needs to be completed yearly or 2 years etc

cheers
 
Tax credit will be as follows

€6,600 @ 20% = €1,315

This €1,315 will reduce their tax liability for the year
 
ok thats great - just in relation to the tax return do you know when there due, and on average what would you have to pay depanding on the rent income being €12600

cheers
 
I think that the Annual Gift Tax Exemption from your parents is €6,000. Is it not possible to utilise this as part of the 'Rent' and then you would pay income tax on the remaining €6,000 only?

It's just a thought. I am not sure if it si workable. Perhaps one of the 'Tax' posters might clarify it.
 
F.Kruger-I'm not sure if this would be seen as an artificial transaction-i.e. you would be declaring rent at off market rates, but effectively charging your parents the going market rate.

I'm no tax expert, but I'm not sure if the annual gift exemption could be used in this way.
 
pink2006 said:
ok thats great - just in relation to the tax return do you know when there due, and on average what would you have to pay depanding on the rent income being €12600

cheers
Click to expand...


Have a read of this [broken link removed]. In short, the tax is due in the normal way under the self-assessment system. There are plenty of details in that Guide, and in the Key Posts, on the tax computation.
 
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