Tax etc on rental income

[T McGibney]

AFAIK its been abolished for new first time tenants, not for new leases.

So if you were already renting and eligible for the rent tax credit prior to the last budget, you are still entitled to the credit if you move house and enter a new lease.

If true (I assume it is as is generally on the ball ) this is outrageous discrimination.

 

[waxy]

AFAIK its been abolished for new first time tenants, not for new leases.

So if you were already renting and eligible for the rent tax credit prior to the last budget, you are still entitled to the credit if you move house and enter a new lease.

Are you eligible if you were renting at any stage prior to the last budget or do you have to have been renting at the last budget?

Seems like a nightmare to police..

 

[oldnick]

If you were not renting actually at 7 december 2010 you are not eligible for rent relief.
How Revenue monitor this I've no idea.

The abolishment of rent relief will be the least of your problems if you go ahead with this two property idea.

 

[waxy]

If you were not renting actually at 7 december 2010 you are not eligible for rent relief.
How Revenue monitor this I've no idea.

The abolishment of rent relief will be the least of your problems if you go ahead with this two property idea.

I appreciate exactly what you're saying and you've been very helpful but what do you expect me to do? Continue raising my kid in a second floor one bed apartment and tell my wife we can't have any more kids?
There has to be some solution to this as that seems very unfair from where I'm standing..

 

[mandelbrot]

Seems like a nightmare to police..

Not really, at least not any more so than the rest of the tax system - people who had the credit already will continue to have it until / unless they notify Revenue they're no longer entitled to it (no longer renting)... this is the point of a self assessed tax system.

No new people will be allowed to claim the credit, without providing proof (PRTB registered tenancy or a lease agreement dated prior to 7/12/10), and the credit will be phased out completely over the next few years anyway.

It is then policed, in the same way as claims for other tax credits, by running compliance programmes, writing to people to confirm their entitlement.

 

[oldnick]

Waxy you are quite right. It is a crazy situation. i told you what to do. Approach the lender and say you wish to transfer the loan to a bigger property.

If the bank refuses then they are denying you the basic human right to have a family as it is is impossible to properly raise a family in a one-bed apt.

If you find a property with an extra bedroom near your present place and it within,say, 30k of what your prewsnt place is owerth , then that makes ssense.
You may even find a decent two-bedroom for the same price ,maybe a but further away.

there's a lot of good two-bed apts for 150k, which you value your present apt at.

 

[Bronte]

.

If the bank refuses then they are denying you the basic human right to have a family as it is is impossible to properly raise a family in a one-bed apt.

.

And what good is that to the OP? He can always leave the apartment, go rent somewhere and see what the bank throws at him and he can have as many kids as he wants then in a house big enough for a family paid for by the government.

In relation to mortgage interest relief, I don't think they will abolish it, the fear of that has driven many potential investors out of the market and for those of you who don't like landlords, that's not necessarily a good thing.

 

[oldnick]

Bronte- your rather belated post is pretty well what I was trying to get across to OP. that is, if the bank acts unreasonably and does not help him to transfer mortgage to a larger place as I had suggested he try (whether at same or slightly higher price) then he is under no moral obligation to the bank.
And he should not just " leave his apt and go rent somewhere else and see what the bank throws at him " without at first negotiating with the bank.

Rent and mortgage interest relief are both being phased out.

Anyway, would be good to hear how OP got on since his last post.

 

[mickeymouse]

If it is any consolation we are in the exact same situation. Living in a 2-bed apartment. We simply have to move but unfortunately are carrying a bit more debt than Waxy.... In 2006 we ‘foolishly’ got a 100% mortgage for 400k. Currently owe 375k. Apartment now worth 220k.

Am pregnant with 3rd child and we cannot manage living in our property for much longer.

By the time we do everything above board and declare all income etc etc, like we should, we will be contributing about 8k extra a year to the mortgage.
That is excluding renting a new property at €1500 per month roughly in the same area as we are so as to access maintain schools etc.
Needless to say we are at our wits end!
Feel like we are living like those in the tenements did years ago!!
IS there anything we can do to improved things?
Desparate
MM

 

[T McGibney]

Rent and mortgage interest relief are both being phased out.

For investors? There is no indication that this is the case. The Minister who introduced the previous 75% restriction is now deceased. The Opposition Spokesperson who campaigned for that restriction to be introduced had her wings clipped in the meantime and now has no responsibility for tax policy in the new government.

 

[oldnick]

Perhaps, TMcGibney, a response to mickeymouse would have been more helpful.

You made the same point in pst 7 and I replied in 13.
I do hope you are right in your (evidently firm) belief that the govnt will not gradually reduce interest relief. However, if they don't do that they will do something else and I believe it prudent to advise inexperienced investors of such possibilities.

mickeymouse - as I asked waxy -is there a possibility of purchasing a larger property even if a little further out, with one more room, for a similar price to that which you will get for your present property?

There has been some movement on the negative equity mortgage front (go through recent threads for more info). It depends on your lender. Its difficult to advsie without knowing incomes, any savings, etc but the last thing i would do is to try to become landlords of your property and rent another for all the reasons in previous posts on this thread.

Maybe I am being more pessimistic than one or two posters, but i do feel that being a landlord will be even more difficult than ever in the future. You must get on to your lender /mortgage brokers and the various agencies and try to transfer the mortgage.

 

[T McGibney]

I do hope you are right in your (evidently firm) belief that the govnt will not gradually reduce interest relief. However, if they don't do that they will do something else and I believe it prudent to advise inexperienced investors of such possibilities.

One person's prudence is another person's scaremongering. And vice versa.