Hi All,
First off I am a recent(ish) landlord and recently completed my first Form 12 online for 2013.
I rented out my place at the start of September 2013, essentially for €1,200 over the 4 months, as such to a total of €4,800 for 2013.
Expenses (maintenance, new fridge, cleaning etc) was €1,441. My mortgage for that time is €970.65, so €3,882.60, 75% of which is €2,911.95 for the year. As such I thought it would work out like this:
€4,800 (Rental Income) - €2,911 (75% of Mortgage Interest) + €1,441 (expenses) = €448 profit, of which I am liable for tax.
Am I right in the above?
Reason I ask is they have written to me saying I owe around €1,600. And that I should have filed a Form 11 as I had rental income above €3,174. Obviously I messed up on the Form 12 and did not enter my Mortgage or did and removed it by mistake, not really sure. What is my comeback on this, just want to make sure I am understanding it before I talk to them. Thanks