Emigrated a year ago...

S

siddaly

Guest
but the hits still keep coming !

Guys,
need some info, advice and help where applicable plse. My situation is as follows:
  • I emigrated a year ago due to lack of employment and as a solution to my debt repayment problems,
  • I left behind a house in Galway and rented it out,
  • the tennant has asked for pps no. to claim rent relief (as hes entitled),
  • house is listed as being my ppr and I get trs on the mortgage (I dont do this to take advantage of the system but out of desperation to keep me on track repaying my debt),
  • my tennant currently pays 750 per month, mort is 1250 per month, I have been backfilling the repayments since I left Ireland but I am now also worried about this rental relief claim development on top of everything else.
  • I have contemplated ditching the house completely but am worried by that route also as my Dad is the loan guarantor and I dont want them coming after him given his age, deteriorating health and the fact that he would worry himself to death.
With the development re; my tennants and the fact that I am now not even resident in Ireland (and dont see this changing for at least 3-5 years) what liabilities am I likely to incurr from the tax office or how do i get a ball park estimation of my liability?,

also will I loose my trs with my emigrated status since its no longer my ppr?
 
You should notify Revenue that you've emigrated and tell them to cease your TRS. They will probably ask you to return the TRS for the past year.

You would be entitled to pay Income Tax on your rental income. But you're allowed to offset 75% of your mortgage interest against your rent. I don't know how much of your mortgage repayment is interest, but in the early years of an annuity mortgage, the majority of a repayment is interest.

Let's say that of €1,250 per month you're paying, the interest is €1,000. (This is just an example - your lender will give you the correct figure.) The allowable interest is therefore €750 per month. In that example you'd have no tax to pay on your rental income for the moment. You would still be liable to pay the Household Charge and the NPPR (see www.nppr.ie)

Don't default on the mortgage as the lender will probably pursue your father if they can't track you down. If you cannot make the agreed repayments, ask to switch the mortgage to interest-only for a period until you're able to make the agreed repayments again. Or come to an agreement with the lender that you'll pay them the €750 per month rent.
 
Siddaly you really need to sort out this for the sake of your father. You cannot just ditch the house and leave him to clean up after you.
 
Has ever any Guarantor ever being pursued for the repayment of mortgage defaulters? I have never heard of a Guarantor being pursued through the courts (although this does not mean it doesnt happen). It seems like it was just another useless bank procedure the banks went through when "vetting" people for mortgages.
 
Things are not that bad regarding liabilities here. If you rented out a year ago in say May 2011, your tax liability is not due until October 2012 so no panic just yet. Fill out the Form 12 by then and as Liam mentioned you are probably not liable for any tax there but you still need to send in the form. You can also carry any losses forward so chances are you do not owe any tax for a few years anyway. Send an email to the TRS asking for it to be stopped. If the house was not rented in March 2011 then you are not liable for NPPR for last year. You have until June this year to pay this years money of €200. You household charge is €110 or so for this year also. You will have to return the TRS for the last year but they will just send out an invoice first and as long as you pay on that warning they will most likely not add any fines. Your next step is to approach your lender and ask for a longer mortgage or interest only till you get a chance to asses your situation down the line.
 
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