Gusdaddy13
Registered User
- Messages
- 6
Hi,
I am writing this in bed at 3.12am while my wife sleeps beside me without a care in the world.
I really hope I can get some good advice here; I've simply stuck my head in the sand over the last few years; and it looks like this stupid strategy has run out of time.
I recieved a letter from Revenue today requesting that I complete a Form12 for income in 2014 and return it by the end of Oct.
We own a 2 bed apartment which we rented out in 2011 Jan-Dec; as it was simply too small after the arrival of our first baby. We rented a 3 bed house in the same estate.
During this time we did not declare rental income or cancel TRS; as I was advised that since I wasnt claiming rental tax credits; this would balance the books.
We moved back into the 2 bed apartment in 2012; and lived there for 17 month; up until we rented it out again in May 2013; due to lack of space after the arrival of our second baby.
All of this was done as the property was in huge negative equity after the property crash.
We have now rented the place out for 30 months; and rented a 3 bed house during this time; again we have not declared rental income or cancelled TRS, and have not claimed Rental Tax Credits.
We registered with the PTRB in 2014 at the request of out tennant; we have not registered our tenancy at the 3 bed house we currently occupy; I pay rent on a monthly basis to our landlord who happens to live next door.
I have now researched our rental income tax liability, as I understand it the rental income after deductions for Management fees; maintenance etc will be taxes at the same rate as PAYE income tax in my case that's 42% + PRSI 5% + USC 7%; totalling to 54% Is this correct?
Also as I understand it; Interest will be applied at 8%; and a Penalty of 3% will also be applied, I understand that the 3% is the minimum and it's at Revenues discretion to apply penalties of between 3 - 100%
Is this correct?
If I declare all rental income over the 42 months the property has been rented; will I be able to retrospectively apply for rental tax credits for the same time frame?
My rough estimate of total tax due Inc interest & penalty is €20k; this based upon the 3% penalty scenario.
Unfortunately I don't have any saving; infact the property is still in negative equity some 30K; and I have personal debt of circa 14k.
We are a single income family and although I earn a very decent salary, we are always broke by the end of the month.
Once the true Tax liability is confirmed how many yrs will Revenue allow an individual to pay it off?
I was already very stressed with our current level of debt; I think this latest revelation might be the final death blow.
Would a PIP be the best course of action, although not sure if this is available to employed people.
Any advise would be greatly appreciated!
Many thanks in advance
I am writing this in bed at 3.12am while my wife sleeps beside me without a care in the world.
I really hope I can get some good advice here; I've simply stuck my head in the sand over the last few years; and it looks like this stupid strategy has run out of time.
I recieved a letter from Revenue today requesting that I complete a Form12 for income in 2014 and return it by the end of Oct.
We own a 2 bed apartment which we rented out in 2011 Jan-Dec; as it was simply too small after the arrival of our first baby. We rented a 3 bed house in the same estate.
During this time we did not declare rental income or cancel TRS; as I was advised that since I wasnt claiming rental tax credits; this would balance the books.
We moved back into the 2 bed apartment in 2012; and lived there for 17 month; up until we rented it out again in May 2013; due to lack of space after the arrival of our second baby.
All of this was done as the property was in huge negative equity after the property crash.
We have now rented the place out for 30 months; and rented a 3 bed house during this time; again we have not declared rental income or cancelled TRS, and have not claimed Rental Tax Credits.
We registered with the PTRB in 2014 at the request of out tennant; we have not registered our tenancy at the 3 bed house we currently occupy; I pay rent on a monthly basis to our landlord who happens to live next door.
I have now researched our rental income tax liability, as I understand it the rental income after deductions for Management fees; maintenance etc will be taxes at the same rate as PAYE income tax in my case that's 42% + PRSI 5% + USC 7%; totalling to 54% Is this correct?
Also as I understand it; Interest will be applied at 8%; and a Penalty of 3% will also be applied, I understand that the 3% is the minimum and it's at Revenues discretion to apply penalties of between 3 - 100%
Is this correct?
If I declare all rental income over the 42 months the property has been rented; will I be able to retrospectively apply for rental tax credits for the same time frame?
My rough estimate of total tax due Inc interest & penalty is €20k; this based upon the 3% penalty scenario.
Unfortunately I don't have any saving; infact the property is still in negative equity some 30K; and I have personal debt of circa 14k.
We are a single income family and although I earn a very decent salary, we are always broke by the end of the month.
Once the true Tax liability is confirmed how many yrs will Revenue allow an individual to pay it off?
I was already very stressed with our current level of debt; I think this latest revelation might be the final death blow.
Would a PIP be the best course of action, although not sure if this is available to employed people.
Any advise would be greatly appreciated!
Many thanks in advance