Elderly grandparents renting out their home - tax issues?

T

tml

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Hi,

Hope someone can answer some questions I have. My grandparents (in their 80's) are no longer able to look after themselves and will be moving in with my parents to receive 24/7 care. With the market the way it is selling their house is not an option so it will be rented out. Anticipated rental income is about €1100 per month. My grandparents have a combined monthly income of €2800 from their pensions. They will be paying my parents €600 per month rent.

So questions:

Will my grandparents need to register with the PTRB?
How do we ensure they are tax compliant?

To be honest my granddads memory is failing and he is becoming more and more confused so would getting a Power of Attorney over his financial affairs be a wise move at this stage? (He has mentioned doing this in the past)

Just as an aside - in relation to my parents tax situation presumably because the €600 per month they will receive from my grandparents can be declared under the rent a room scheme?

Any other issues we should be aware of?

Thanks
 
I assume they will have to register with PRTB.
You could do their tax returns for them or , if you don't feel confident about that, employ an Accountant for at least the first year.

A Power of Attorney loses its effect if the Donor ( the person who gave the Power to someone else) is no longer compos mentis. Your grand parents should be making an Enduring Power of Attorney ( an entirely different animal to an ordinary Power of Attorney) so that when they are unable to make their own decisions that their nominated Attorney can do it for them. Citizens Information online has plenty of advice on this.

mf
 
Thanks for that guys,

My mam is already in receipt of carers allowance for both of them so thats sorted.

I will definitely look into the Enduring Power of Attorney, sounds like that is what we need.

Cheers
 
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