First Time Landlord Questions

R

Rebelrebel

Registered User
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Hi there,

I'm a recent landlord and have just rented out what was previously my family home (we have moved house). The rental started on Oct 1st and I have an agency managing the rental etc.

The house is jointly owned by my wife and I so my question is when do we have to make a tax return for the house? And do we each have to make a tax return (split the whole income expenses etc in 2 and file that amount each) or can I alone make a tax return for the whole lot?

Also when should I register with the Revenue as a landlord and again do both my wife and I have to do that?

Anything else I should be aware of please feel free to let me know. The agency are registering me with the PRTB etc. And I'm aware of all I can write off against income and capital expenses etc.

Thanks.
RR
 
You will I'd imagine be the assessable spouse for you both.

You should register from the date that you let the property.

You can file Form 11 including both your incomes with the rent divided in two.

You should register the property with the PRTB.

75% of the mortgage interest is allowed. TRS no longer applies as you don't live in the property.
 
Joe_90 said:
You will I'd imagine be the assessable spouse for you both.

You should register from the date that you let the property.

You can file Form 11 including both your incomes with the rent divided in two.

You should register the property with the PRTB.

75% of the mortgage interest is allowed. TRS no longer applies as you don't live in the property.
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Thanks for the reply. So It could just be myself who is the assessable person but when I register I have to include both of our incomes and show the rental income split between us - is that correct? Can I file the form 11 online via ROS do you know?
 
I wouldn't trust an agency to do the PRTB, now the PTB, who sent me, a registered landlord, a letter last week telling us we landlords must register with them!

It's more than 75 % if you've social welfare tenants, hoops to jump through of course.

And some marvellous idea from Noonsn in the budget about gradually bring the 75% up to 100%.
 
New landlords should use an accountant unless they know what they are at. Money well spent.
 
Very bad link, the countrywide refurb scheme no longer exists as far as I know.

Also the link to the HRI is circular. I was hoping I was going to be incentivised to refurbish.
 
Bronte said:
New landlords should use an accountant unless they know what they are at. Money well spent.
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Best advice. Accountants bill is offset against tax. There are also other bills which can help lower tax bill e.g. travel costs for inspection and management of the property, maintenance etc.
A good accountant will make everything a lot easier and less worrying
 
Tommy I asked about that on here a very long time ago. Don't think you were on the thread. Specifically if I had to make a business trip back (flights and hotel) to deal with a problem tenant. And they said I could charge it up IF it was exclusively for that purpose and didn't include personal stuff, like visiting family. In that case it was specifically business. And becaue the accountant advised me that revenue don't like this and might query it I never claimed it.

Going back to the travel issue. Can petrol not be claimed for? It's a legitimate cost.
 
Bronte said:
Tommy I asked about that on here a very long time ago. Don't think you were on the thread. Specifically if I had to make a business trip back (flights and hotel) to deal with a problem tenant. And they said I could charge it up IF it was exclusively for that purpose and didn't include personal stuff, like visiting family. In that case it was specifically business. And becaue the accountant advised me that revenue don't like this and might query it I never claimed it.
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They'll allow international travel costs - eg an expat's flights home to deal with an issue on a property - if they're exclusively for that purpose. Problems arise in relation to the application of "exclusively" - a day return eg from London to Dublin might satisfy it, but would a weekend flight and return???


Bronte said:
Going back to the travel issue. Can petrol not be claimed for? It's a legitimate cost.
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Never, ever, ever allowable.
 
It's very hard Tommy to travel from anywhere but London to Dublin and then onto the four corners of Ireland in a one day trip. I'd come under that category. Plus I refuse to get up in the middle of the night never mind that flights on Saturdays are hard to come by. But I do get the logic now of that, I'll bear it in mind.

Why isn't petrol allowed. Say if you've to drive from an hour away once a week to collect rents? Plenty of people do that.
 
Bronte said:
It's very hard Tommy to travel from anywhere but London to Dublin and then onto the four corners of Ireland in a one day trip. I'd come under that category. Plus I refuse to get up in the middle of the night never mind that flights on Saturdays are hard to come by. But I do get the logic now of that, I'll bear it in mind.
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I honestly think it's designed never to be claimed.

Bronte said:
Why isn't petrol allowed.
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You'll have to ask that of someone better than me. It doesn't make sense. Just one more of a vast range of begrudging little pitfalls that our tax code holds for people with self employment and investment income.
 
If you are paye workers and your rental profit before capital allowances is less than 5000 in 2016 (previously 3174) and there is no other income that would make you a chargeable person for self assessment then there is no need to register for self assessment for 2016, just declare the income on a form 12 or eform 12 after the end of the year. Assuming that your profit exceeds the 5000 threshold in 2017 then you will need to register for self assessment and file a form 11 tax return for 2017 before the 31st October 2018 or 31st August 2018 (if you want revenue to calculate the self assessment section for you). Apart from it being a legal requirement it is important though that you make sure you are registered with PRTB as a landlord and that each tenancy is registered so that you can claim up to 75% of mortgage/loan interest as an expense. Also if you were previously getting tax relief at source on mortgage interest on the basis of it being your ppr make sure it is ceased.
 
Thanks for all the replies. The agent looking after the property has registered me with the PRTB and the tenancy is registered so all covered there.
The total gross rent for 2016 will be 6,000 but after letting and management fees, 75% mortgage interest and other fees it will be well under 5,000 so in that case it seems like I complete the form 12 as opposed to the form 11. Is that correct or is the 5,000 threshold for the gross rent?

I will indeed get an accountant to assist when the time comes - just want to fully understand my obligations etc.
 
Rebelrebel said:
The total gross rent for 2016 will be 6,000 but after letting and management fees, 75% mortgage interest and other fees it will be well under 5,000 so in that case it seems like I complete the form 12 as opposed to the form 11. Is that correct or is the 5,000 threshold for the gross rent?
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That is correct, it's taxable income.
 
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