First time landlord

Orbit

Registered User
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16
I inherited a house from my grandparents in 2010, I don’t live in this house. Its potential rental value is €500 per month.
Since 2010 I let my brother and his wife live there rent free which I’m entitled to do under Section 40 free use of property.
For this reason I don’t register with PRTB and I don't do income tax return for this property. I pay the nppr and property tax.
They are moving out soon and then I will rent out this house for the first time, register with PRTB and do income tax returns.
Can revenue have any issue with me allowing family members use this house rent free ?
 
I would say no on the basis that your market value of rent is fair and correct.

There's no issue for yourself - no income from the property. The only issue is whether there is a gift from you to your brother and his wife. In this case, you've effectively given a gift of €3,000 each to your brother and his wife (500 x 12, split two ways). Allowing for the Small Gifts Exemption of €3,000 to each person each year, no taxable gift has been granted.
 
Thanks that’s interesting.
Yes €500 is the correct rental value as it’s only a small one bedroom house.
Is there anything I need to be doing for revenue to prove that it was rent free to family member’s since 2010 ?
 
Is there anything I need to be doing for revenue to prove that it was rent free to family member’s since 2010 ?
No. If they query it then explain. Remeber you are just a minute case of millions which unless they have some good reason to check they will not. They will process your tax and may expect to get a form off you for every year after you start but not prior. As far as they are concerned you don't have any liability at the moment. Sometimes I think people give way too much credit to our great public servants :)
 
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