Eddie Peters
Registered User
- Messages
- 56
I would appreciate confirmation on some/any of the following.
1. Pre-rental expenses are not allowable, but white goods can be estimated based on current market value.
2. Taxable rental income is the gross rental income minus expenses plus capital allowances at 12.5% over 8 years.
3. USC is charged on rental income after capital allowances and before expense deductions.
4. Assuming taxed on higher tax rate, then for Jan to Dec 2014, the taxable rental income will incur 52% tax (41% income tax + 4% PRSI + 7% USC) in 2015.
5. Rental deposit payments are not included in tax returns.
6. 75% of mortgage interest is deducted from the gross rental income if registered with the PRTB - costing €90 if registered within the month of tenancy; or €180 retrospectively after one month. How is a retrospective application made e.g. if tenants have moved on, are PPS numbers and signatures still required.
7. Mortgage protection policy payments are allowable for rental tax income purposes.
8. An overall rental loss will incur 4% PRSI + USC charge (if mortgage interest, expenses and capital allowances exceed rental income),
9. Rental allowance is paid to occupier regardless if not used to pay for rental property occupied.
10. Preliminary tax is required if rental profit exceeds €3174 and is based on the income paid for the previous year.
11. A loss on one Irish rental property can be off-set against another Irish rental property.
12. An audit by Revenue will require expense receipts for the previous four years.
13. After six months of occupancy, a tenant is allowed to stay 112 days in the premises after notice given by owner.
14. Tenants may occupy a property without paying rent until a decision has been made by the PRTB.
15. Property tax is not an allowable rental expense.
16. Water tax (when paid by landlord) is an allowable expense.
17. When a tenant vacates a property, expenses can be claimed while a replacement tenant is being sought.
18. When making a tax return, savings are liable for dirt tax + USC.
19. If lump sums have been paid against the mortgage, then mortgage protection policy payments can be reduced.
20. There is absolutely no government incentive to let a property or to save for the future.
Thanks in advance.
1. Pre-rental expenses are not allowable, but white goods can be estimated based on current market value.
2. Taxable rental income is the gross rental income minus expenses plus capital allowances at 12.5% over 8 years.
3. USC is charged on rental income after capital allowances and before expense deductions.
4. Assuming taxed on higher tax rate, then for Jan to Dec 2014, the taxable rental income will incur 52% tax (41% income tax + 4% PRSI + 7% USC) in 2015.
5. Rental deposit payments are not included in tax returns.
6. 75% of mortgage interest is deducted from the gross rental income if registered with the PRTB - costing €90 if registered within the month of tenancy; or €180 retrospectively after one month. How is a retrospective application made e.g. if tenants have moved on, are PPS numbers and signatures still required.
7. Mortgage protection policy payments are allowable for rental tax income purposes.
8. An overall rental loss will incur 4% PRSI + USC charge (if mortgage interest, expenses and capital allowances exceed rental income),
9. Rental allowance is paid to occupier regardless if not used to pay for rental property occupied.
10. Preliminary tax is required if rental profit exceeds €3174 and is based on the income paid for the previous year.
11. A loss on one Irish rental property can be off-set against another Irish rental property.
12. An audit by Revenue will require expense receipts for the previous four years.
13. After six months of occupancy, a tenant is allowed to stay 112 days in the premises after notice given by owner.
14. Tenants may occupy a property without paying rent until a decision has been made by the PRTB.
15. Property tax is not an allowable rental expense.
16. Water tax (when paid by landlord) is an allowable expense.
17. When a tenant vacates a property, expenses can be claimed while a replacement tenant is being sought.
18. When making a tax return, savings are liable for dirt tax + USC.
19. If lump sums have been paid against the mortgage, then mortgage protection policy payments can be reduced.
20. There is absolutely no government incentive to let a property or to save for the future.
Thanks in advance.