M
medo
Guest
Hi,
Im wondering if someone here could give me some advice on what I think is a potentially very big problem for me.
My partner at the time and I purchased our second home in late 2006. The relationship ended shortly after, and we began renting out the property in July 2008. We were both very young and did everything in a rush without getting any professional advice or help. The tenants moved in July 08 and stayed until July 09. The rent they paid did not cover the mortgage, not even close. I did register this tenancy with the PRTB and they also claimed rent relief as they asked me for my PPS for this purpose. (Not rent allowance - but rent relief).
The second tenancy ran from July 09 to Jan 2011. This tenancy was not registered with the PRTB and the tenants didnt claim any relief or so they told me.
Getting to the problem....through being very ignorant and very young , myself and my ex were under the assumption that as the rent was nowhere near covering the mortgage we didnt need to do anything else - i.e. declare the rental income for tax purposes.
It has only come to light recently that we should have been doing this all along and that we are probably in very very big trouble. The funniest thing is I wasnt exactly hiding it....I even claimed rent relief myself as I have been renting a property since I moved out - so therefore it should show that I am recieving both rent relief and TRS on a mortgage!!!
Where do I go from here....I am currently in the process of getting new tenants for the house and I want to sort out this mess....why have revenue not come after me?? Could I potentially say the house was rented for the first year but empty until now?
Do I go to an accountant and get him to try his best for me to sort this mess.....Im very broke, Im paying rent on top of the balance on the mortgage, and if the ECB rate starts to climb as predicted , along with me possibly being hit with a tax bill and fines and losing my TRS...It just wont be possible for me to cover the mortgage at all.
Am I right that on top of fines and tax bill and paying back TRS from past and losing it for future that I will also end up paying a tax on rental income and that because of that increase in tax it will also effect my takehome pay negatively?
I know I have been ignorant, but I need to find some way out of this mess.
Thanks
Im wondering if someone here could give me some advice on what I think is a potentially very big problem for me.
My partner at the time and I purchased our second home in late 2006. The relationship ended shortly after, and we began renting out the property in July 2008. We were both very young and did everything in a rush without getting any professional advice or help. The tenants moved in July 08 and stayed until July 09. The rent they paid did not cover the mortgage, not even close. I did register this tenancy with the PRTB and they also claimed rent relief as they asked me for my PPS for this purpose. (Not rent allowance - but rent relief).
The second tenancy ran from July 09 to Jan 2011. This tenancy was not registered with the PRTB and the tenants didnt claim any relief or so they told me.
Getting to the problem....through being very ignorant and very young , myself and my ex were under the assumption that as the rent was nowhere near covering the mortgage we didnt need to do anything else - i.e. declare the rental income for tax purposes.
It has only come to light recently that we should have been doing this all along and that we are probably in very very big trouble. The funniest thing is I wasnt exactly hiding it....I even claimed rent relief myself as I have been renting a property since I moved out - so therefore it should show that I am recieving both rent relief and TRS on a mortgage!!!
Where do I go from here....I am currently in the process of getting new tenants for the house and I want to sort out this mess....why have revenue not come after me?? Could I potentially say the house was rented for the first year but empty until now?
Do I go to an accountant and get him to try his best for me to sort this mess.....Im very broke, Im paying rent on top of the balance on the mortgage, and if the ECB rate starts to climb as predicted , along with me possibly being hit with a tax bill and fines and losing my TRS...It just wont be possible for me to cover the mortgage at all.
Am I right that on top of fines and tax bill and paying back TRS from past and losing it for future that I will also end up paying a tax on rental income and that because of that increase in tax it will also effect my takehome pay negatively?
I know I have been ignorant, but I need to find some way out of this mess.
Thanks