My daughter and partner recently returned from Canada and are planning to move into an apartment I own in a rent restricted zone in South Dublin. The current tenant is coming to the end of a 10 month lease and has been aware of my daughters plans since before the lease was signed.
I intend to help my daughter and partner save for a deposit on their own home and as such I intend to only charge them 50% of the current rent. Also, I am aware of benefit in kind impact of this agreement for my daughter and partner and the options around reducing their tax liability through the use of the annual €3000 gift allowance to both parties which you covered recently in your column.
My query is around the most effective way to structure the rental agreement. I have a concern that if I put in place a rental agreement at 50% of the current rate then I will only be able to increase the rent by 2% when the lease ends. This would make the apartment uneconomical to rent to a non family 3rd party. I was wondering should I put in place a rental agreement at the full price but with me paying 50% of it and if I did this would I be liable for tax on the full rental amount even though my true income on the lease is only 50%
I intend to help my daughter and partner save for a deposit on their own home and as such I intend to only charge them 50% of the current rent. Also, I am aware of benefit in kind impact of this agreement for my daughter and partner and the options around reducing their tax liability through the use of the annual €3000 gift allowance to both parties which you covered recently in your column.
My query is around the most effective way to structure the rental agreement. I have a concern that if I put in place a rental agreement at 50% of the current rate then I will only be able to increase the rent by 2% when the lease ends. This would make the apartment uneconomical to rent to a non family 3rd party. I was wondering should I put in place a rental agreement at the full price but with me paying 50% of it and if I did this would I be liable for tax on the full rental amount even though my true income on the lease is only 50%