Advice needed on tax on rental income.

[mur42]

I have a question regarding rental income. Myself and my husband have two houses (one in each name). We were living in one of them but have had to move into my parents home due to family illness.

One of the houses is rented since last November (2010) - I have registered with Revenue for Income Tax am also a PAYE worker. First question do I have to fill out returns for this October on rental income? If so do I wait for Revenue to send these out to me?

We have recently rented the second house which is in my husbands name. He is a full time carer and receiving carers allowance. Do I need to register him with revenue for income tax? We are jointly assessed.

 

[Slim]

I have a question regarding rental income. Myself and my husband have two houses (one in each name). We were living in one of them but have had to move into my parents home due to family illness.

One of the houses is rented since last November (2010) - I have registered with Revenue for Income Tax am also a PAYE worker. First question do I have to fill out returns for this October on rental income? If so do I wait for Revenue to send these out to me?

We have recently rented the second house which is in my husbands name. He is a full time carer and receiving carers allowance. Do I need to register him with revenue for income tax? We are jointly assessed.

I think you have to complete a form 11 for 2010. This is available on the Revenue.ie site. The rent you received for the portion of the year you rented out the house, if it was the former principal private residence, would be subject to tax on the income after allowable expenses. Both tenancies would also have to be registered with PRTB. The second house, if only rented in 2011, would form part of your 2011 return, next year. Hope this helps. slim

 

[elcato]

I have registered with Revenue for Income Tax am also a PAYE worker.

How did you register ? Do you mean you are getting an income somewhere else as well apart from through the PAYE system ?

First question do I have to fill out returns for this October on rental income? If so do I wait for Revenue to send these out to me?

If your sole income at the moment is PAYE and you want to pay tax on additional rental income I believe a form 12 will suffice. Revenue will not send out a form unless you requested it, it's up to you to file a return on time. As stated you only need to make a return for the last three months rental in 2010 by October 2011. You can file this anytime before that date btw.

 

[Ham Slicer]

To add to what Slim said. Don't forget about NPPR either. Also make sure you are not claiming TRS on the properties.

There is no need to register your husband as you are jointly assessed.

elcato said "If your sole income at the moment is PAYE and you want to pay tax on additional rental income I believe a form 12 will suffice. Revenue will not send out a form unless you requested it, it's up to you to file a return on time. As stated you only need to make a return for the last three months rental in 2010 by October 2011. You can file this anytime before that date btw."

From what the OP said it sounds like a TR1 has been submitted to Revenue and a Form 11 will indeed have to be filed.

 

[mur42]

Yes I submitted a TR1 to Revenue to register for Income Tax. I am of the understanding the a Form 12 is for additional income of less than €3,000? While that will be the case for 2010 it will be more than this amount for 2011. So am I correct in saying that I submit a Form 12 for 2010 rental income before October 31 and then next year fill in Form 11 for this years rental income.

Also I have paid NPPR for my house for this year. As my husbands house has only been rented in the last week I am off the belief that we do not pay this until next year.

Another point on NPPR - the fact we are now living with my parents which is not our PPR - will we have to pay the fee for the 2 houses we have rented even though we have no PPR ourselves?

 

[Ham Slicer]

Yes I submitted a TR1 to Revenue to register for Income Tax. I am of the understanding the a Form 12 is for additional income of less than €3,000? While that will be the case for 2010 it will be more than this amount for 2011. So am I correct in saying that I submit a Form 12 for 2010 rental income before October 31 and then next year fill in Form 11 for this years rental income.

Also I have paid NPPR for my house for this year. As my husbands house has only been rented in the last week I am off the belief that we do not pay this until next year.

Another point on NPPR - the fact we are now living with my parents which is not our PPR - will we have to pay the fee for the 2 houses we have rented even though we have no PPR ourselves?

Form 11 should be filed for 2010. It's more or less the same form so no big deal in terms of filling it in.

NPPR for husband's house is not due til' next year alright.

I believe NPPR is still due on both houses as they are both rented.

FYI NPPR charge is not tax deductible