Property in Wife's name as income - treatment

S

Stockmaster

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Hi All, My wife has finished her work and is now at home. WE are jointly assessed for tax purposes as I am PAYE. My question is if she purchases property at 200K approx and gets a 10% yield approx 20K by forming some vehicle such as a company which pays her. Would she again get her tax credits which would allow her to earn up to a certain limit tax free in her own right, (from other posts it looks like that would be 16K approx) - Thanks
 
If your wife has rental income it's schedule D Case V, she will not qualify of the PAYE Tax Cr. you already have her share of the married tax credit so the benefit of having the income in your wife's name is the increase of €23,800 in the standard rate band and a PRSI contribution towards her own state pension.

Looking at forming a company to purchase a rental property is not a good idea.
 
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