My siblings and I want to help our parents out financially. They are both over 65, on a state pension and do not have any other income. I have been reading the info here on D.O.C and the tax reliefs that are available for both the Covenantor and the Covenantee.
http://www.citizensinformation.ie/c...liefs/deeds_of_covenant/?searchterm=covenants
There a number of points that are not very clear to me.
How do I calculate the tax relief for both parties?
They mention a reduction of interest relief by 5% on covenants for adults over 65, but also say that the total tax relief for the covenantor can not exceed 5% of their gross income less deductions. Can someone explain?
Can these payments be made monthly to my parents and if so is the tax relief claimed yearly or do we recieve it in the form of extra tax credits?
Hopefully this is not as complicated as I think it is! If anybody has any examples I would appreciate it.
http://www.citizensinformation.ie/c...liefs/deeds_of_covenant/?searchterm=covenants
There a number of points that are not very clear to me.
How do I calculate the tax relief for both parties?
They mention a reduction of interest relief by 5% on covenants for adults over 65, but also say that the total tax relief for the covenantor can not exceed 5% of their gross income less deductions. Can someone explain?
Can these payments be made monthly to my parents and if so is the tax relief claimed yearly or do we recieve it in the form of extra tax credits?
Hopefully this is not as complicated as I think it is! If anybody has any examples I would appreciate it.