Anyone know what class of PRSI levi is paid on rental income? would this contribute to the old age contributory pension?
At the moment I have an average tax bill on rental income of approx 2,000 + whatever the PRSI levi is.
Maybe this post would be more appropriat to a pensions thread.... I will - all going to plan - have a defined benefit pension through work but it will be very low as I only work part time which is why I am very interested to know if it is possible to make the tax and PRSI that I pay on my rental income work for me.
Thanks in advance for any advice.
I am not a tax expert, I'm not even qualified, but AFAIK, PRSI is levied on earned income, i.e. income arising from an employment or self-employment. Therefore, unless you are deemed to be carrying on a profession or a trade of property rental, I don't think you will be liable for PRSI on any income from this source. I could be wrong, and maybe you would be better asking this within the Property Investment forum.