Help in taxation for rental income

Discussion in 'Property investment and tenants' rights' started by bibiphoque, Jul 31, 2012.

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  1. norejon

    norejon Frequent Poster

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    thanks so much . I will review the link you sent . I will defintely have losses for 2011 .. i have paid prelimerary tax last yr for 2011 so would this then roll over

    I know i was "entitled "to the rent for 7 months in 2011 but have never recieved it and will never ... so when i calculate rental income do i just write in the 5months i received ?

    Thanks againn
     
  2. mandelbrot

    mandelbrot Former user

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    Read the link ;)

    "If by the time the tax return is submitted, it has become apparent that the rent is irrecoverable, then the section 101 claim should be made when submitting the tax return. A suggested approach is to set out the rental income computation as follows:

    Rent receivable 100,000
    Less irrecoverable amount not received (section 101 claim for relief) (5,000)
    Net rental income 95,000
    Less expenses… etc

    Accompanying the rental computation will be a claim in writing containing sufficient detail to prove to the Revenue Commissioners that either the tenant defaulted and the rental income is irrecoverable, or that a waiver was made to avoid hardship on the part of the tenant.
    "
     
  3. norejon

    norejon Frequent Poster

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    carrying rent loss forward

    thanks so much nearly sorted .. one quick question

    how do you calacualte your losses , is it the expenses , interest relief and subtract the rent recieved

    rent = 2100
    expenses = 3200
    interest allowed = 1569



    thanks in advance
     
  4. elcato

    elcato Moderator

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    Read the fourth or fifth post in the thread for an example of calculations :)

    liabilty = 3200 + 1569 = 4769
    asset = 2100
    Loss = liabilty - asset = 2669 to be carried forward to following year. Add any losses from previous year also
     
  5. norejon

    norejon Frequent Poster

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    thanks so much. I have completed the ros online self assessment form and will carry that loss through to next year .
     
  6. Bronte

    Bronte Frequent Poster

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    There is a bit of confusion here. To claim the 75% mortgage interest relief you must register the tenancy with the PRTB and it costs 90 Euro.
     
  7. elcato

    elcato Moderator

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    This first post suggests that the latest poster has indeed registered.
     
  8. JMJR

    JMJR New Member

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    As you are changing from personal habitation to a tenancy you also have to consider that both the mortgage holder and the insurer may need to be informed and they may want to levy business rates instead of personal rates.
    In the case of insurance you may only need buildings cover or it is possible to get a specific landlord policy which covers buildings and certain items like boiler/washing machine etc. Fire alarms may reduce the cost of cover.
    The tenant is responsible for their own contents cover.


     
  9. laois1

    laois1 Frequent Poster

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    Just to clarify - is the USC/PRSI payable on the rental income profit ? Im a PAYE worker ....my accountant has always said this is payable on any profit ??
     
  10. mandelbrot

    mandelbrot Former user

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    Yup, see previous thread here: http://www.askaboutmoney.com/showthread.php?t=167255
     
  11. Booter

    Booter Frequent Poster

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    Last edited: Sep 25, 2012
    I need some clarification on the area of "losses forward" mentioned a few times in this thread.

    With regard to tax returns on rental income, when making a return for say Year 2, where there was a loss in Year 1, is it mandatory to include the Year 1 loss as a "loss forward" on year 2 return? If I don't do this, can I then call the year 1 loss forward at a future date if I need it? I suppose another way of asking the question is, am I supposed to accumulate my losses as the years go on, and enter these on the annual Form 12?

    (Hope that makes some sense!)
     
    Last edited: Sep 25, 2012
  12. Nutso

    Nutso Frequent Poster

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    No - the loss must be set off against the first available rental income.
     
  13. JKav

    JKav Guest

    Tax Collection Agent for non resident landlord - Who to ask?

    Hi,

    I am a non resident landlord and i need to ask somebody to be a tax collection agent for me. I would like to know what their responsibilities as an agent are and if they are personally liable for any tax I would owe?

    many thanks for any help with this query,

    Jkav
     
  14. Booter

    Booter Frequent Poster

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    Thanks Nutso,

    So lets say I've made a loss after deducting relevant expenses etc, but before
    (1)Capital Allowances or
    (2)Losses forward from previous year

    Does that mean that I can hold back (1) for a future year, but that (2) is effectively gone?
     
  15. Ciall

    Ciall Guest

    Afternoon all,

    I am a PAYE worker making my first ever tax return and I would really appreciate any help that is on offer here.

    I am letting my apartment and have been since July 2011. I am currently making my tax return for 2011.

    Here are the questions I have
    1. I am making my tax return for 2011, but I only left the apartment for 6 months of the year. Will I include 75% of the Mortgage Interest I paid for 6 of the 12 months or the entire amount I paid in the year?
    2. I pay a one off management charge once a year. Will I include the entire amount in my deductions or 50% of it (6 of 12 months?)
    3. Wear and Tear. I bought the apartment in 2007 and we bought all the existing furnishings at the time separate to the apartment purchase contract. I left all these furnishings in the apartment when I left. Am I entitled to include 12.5% per year of the cost of this furniture as a deduction or am I only entitled to include furniture I bought since the letting?
    4. Will I attach receipts or a P&L for my deductions to the Form 12 or will I wait for the revenue to ask for these after they assess my return?
    5. I pay into my pension in work but my employers do contribute also. I am pretty sure they take off all sorts of deductions from this already. Do I have to include this and how much do I include (e.g. just what my employers contribute?).
    6. I pay life insurance as a requirement of my mortgage. Is this deductable?

    Thanking you in advance.
     
  16. norejon

    norejon Frequent Poster

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    36
    well you just claim for the 6 months > Rental income was for 6 months only so the outgoings are against that period of time

    You do not attach receipts but keep in case of an audit
    Are you registered with www. ros.ie . You can then file the return online


    Read this thread from the start . very helpful info on it. Also check out the revenue leaflet on rental income
     
  17. Ciall

    Ciall Guest

    Thanks norejon! I am on ROS but I find the whole thing quite confusing. I'm not sure where to put the rental income in. I see a space for schedule E income but I thought rent was schedule D part V?
     
  18. Nutso

    Nutso Frequent Poster

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    432
    My understanding is that if you made a loss for a second year, the loss for both years can be carried forward but must be set off against your first rental gain (or if you have another rental property gain can be set off against that).
     
  19. Nutso

    Nutso Frequent Poster

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    432
    You can deduct a % of these as a capital cost - e.g. if you used the furniture for 2 years, then you should reduce the cost by 12.5% for 2 years and use this amount to calculate your capital expense. My tax accountant told me that the balance could then be deducted over the following 6 years (rather than 8).
     
  20. superfan

    superfan Frequent Poster

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    67
    I am in a similar position except that I lived in my house for 3 years before renting it out.
    Unfortunately though I don't have any of the receipts for furnishings from when I bought the house in 2007,can I still claim for this for the period 2011-15?
     
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