Hi, when my dad was in a nursing home, as powers of attorney, we let out a room several times a month, mainly weekends. He passed away in 2016 and we continued doing this. The house is on the market & probate hasn't gone through quite yet. It's not big potatoes but revenue are enquiring about income from Airbnb and I'd like to know who is liable for the tax. It was used to pay bills, repairs and even funeral expenses at one point. Was it my fathers income while he was alive and is it the estate's income after that? Thanks
Yes. Taxable at his marginal rate plus PRSI (unlikely) & USC if applicable during his lifetime, and on the estate at a flat 20% (no PRSI, USC, nor credits etc) after that.
Generally, yes. But best get professional assistance unless you know what you're doing. Ensuring Revenue processes the post-death estate Form 11 return(s) is straightforward if you know how but can be messy otherwise.Thanks, I assume nursing home fee's and medical expenses can be offset against the taxable amounts for those years?
With the estate is it 20% after expenses - cleaning, portion of bills relating to room rental?
Generally, yes. But best get professional assistance unless you know what you're doing. Ensuring Revenue processes the post-death estate Form 11 return(s) is straightforward if you know how but can be messy otherwise.
Why would nursing home fees be deductable, you mean in general. But not from the AirB&B business surely?
Please don't scaremonger.And presumably the tax for 2016, which is late, is subject to penalties and interest.
Generally, yes. But best get professional assistance unless you know what you're doing. Ensuring Revenue processes the post-death estate Form 11 return(s) is straightforward if you know how but can be messy otherwise.
Speculating about penalties when you have no idea whether or not they would be likely to be applied is the essence of scaremongering.How is asking a legitimate question scaremongering.
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I thought nowadays they did everything by the book.
How is asking a legitimate question scaremongering. And it's clear there was income prior to death. So how does that come under the estate of a deceased person.
Speculating about penalties when you have no idea whether or not they would be likely to be applied is the essence of scaremongering.
Who else is going to pay the liabilities of the deceased if not their estate?
So you could continue to rent out the house for the next 10 or 20 years and that would all be hunky dory with revenue as everything will be paid from the estate and there's no penalties.
I think asking pertinent questions is useful. That's how people like the OP and others find out different aspects that they hadn't thought of.
Why would nursing home fees be deductable, you mean in general. But not from the AirB&B business surely?
And presumably the tax for 2016, which is late, is subject to penalties and interest.
Sorry but the statement I've highlighted indicates that you haven't the first clue what you're talking about. Of course asking pertinent questions is useful, but red herrings and scaremongering are not, and merely waste the time of those of us who have to debunk them.
If you've a problem with anything I post, you should know at this stage .Un-called for responses like that would put folk off from asking any sort of question, for fear of sounding stupid. Wrong on so many levels.
Hang on a minute,
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This wasnt about staying silent, more about having a little respect in your tone regarding a seasoned poster who like yourself, gives it up freely.
Sorry but the statement I've highlighted indicates that you haven't the first clue what you're talking about.
...absolutely infuriating...
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