Rental Income

K

kot1

Guest
I charge an all inclusive rent to my tenants (i.e. includes utilities). Do I declare just the rent part of this income to the tax office or do I include the whole lot. How do I then treat deductions if I include the full inclusive rent.
 
Are you paying for heat, light, Cable TV, TV licence, waste disposal, maintenance on house and grounds, etc. etc. Very interested to know how you costed that into your rent.
 
You declare the full income, but claim the cost of the utilities you pay for as a deduction
 
Yes I pay for everything. I just added up all my bills for a year and did an average and divided it up by no. of tenants. There is a stipulation that if they go over this too much their inclusive rate will be reviewed. Seems to work for me.
 
***IGNORE

Take the amount of the utililies that you proportion to the tenant. Subtract that from the amount you recieve from each tenant and then claim that amount as expenses.

eg - if you charge someone €500/per month including utilities and €100 of that is utilities, then the rent is €400.

The ultilities will then be taken of the gross rental income along with any other allowable expenses (insurance, PRTB, mortgage interest, capital allowances etc.)

HTH

***IGNORE - had a long day & not thinking straight. Watersprite pointed out my error below !!
 
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sam h said:
Take the amount of the utililies that you proportion to the tenant. Subtract that from the amount you recieve from each tenant and then claim that amount as expenses.

eg - if you charge someone €500/per month including utilities and €100 of that is utilities, then the rent is €400.

The ultilities will then be taken of the gross rental income along with any other allowable expenses (insurance, PRTB, mortgage interest, capital allowances etc.)

HTH
Click to expand...

I may be missing something but isn't that double-counting it? Shouldn't OP account for the the full €500 as rent and then deduct the €100? If the rent is deemed to be €400, then the €100 expenses shouldn't be counted again.
 
Domo said:
You declare the full income, but claim the cost of the utilities you pay for as a deduction
Click to expand...

That's what I do, they pay me rent plus utilities, I declare this as income and then I just subtract the utility bills. Otherwise it gets too complicated.
 
I don't supervise what tenant's claim to revenue, it's hard enough to keep my own account in order. In any case the rent tax relief is so low as far as I know even if you included the utilities it wouldn't make any difference.

I guess revenue can cross check my returns with what the tenant's claim if they are so inclined. I think they do spot checks but am not sure. This wouldn't amount of a hill of beans and would be a waste of revenue resources I imagine.
 
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