Forced landlord, not doing what I should be

Those figures don't stack up. Regardless, you have bigger worries with the tax man. I hope you resolve yr debts with them amicably.
 
2013

Rent: 2700
Mortgage Interest: 2932 X 75% = 2199
House Insurance: 66
Life Insurance: ??
Maintenance: 225
Repairs: ??
Wear and Tear:
2014

Rent: 10,800
Mortgage Interest: 11,728 X 75% =8796
House Insurance: 264
Life Insurance: ??
Maintenance: 900
Repairs: ??
Wear and Tear: this should be sizable.

Observations:

You need to put a figure on your furniture/white goods to get an idea of how much you can include for Wear and Tear, which is deducted at 12.5% over 8 years. How about you put up a list and value on here. Yes you should have receipts but if you don't a reasonable value will be fine.

Get a copy of your annual interest cert and take the figure for total interest from there.

Register with the RTB immediately, that's 180 to deduct in the 2018 returns next year. If you've had more than one tenant you need to make more than one RTB registration.

Looks to me that by the time you add in Wear and Tear you won't have any tax to pay for the earlier years, which is a good thing because of penalties and interest.
 
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cremeegg said:
€280,000 mortgage at 4.5% is only €1,050 interest per month, giving a deductible of just €787
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I've no idea Cream egg I was just using the figures John gave. I'll go back and double check. And I can amendment the figures then.
 
NPPR

Here you have good news. And you've very lucky

http://www.citizensinformation.ie/e...uthority_charges_on_residential_property.html

If you owned residential property on the liability date in any of the years 2009 to 2013, and it was not your only or main residence on that date, you were liable to pay the charge of €200. The first liability date was 31 July 2009. For each year from 2010 to 2013, the liability date was 31 March.

- John did not let his property until Octover 2013, so as the liability date of 31st March does not apply he is home free on this one.

Advise: (to John and other posters) I had to get a certificate to prove that during 2009- 2013 that a home I was selling as executor was a principal private residence, everybody will need this and it's better to get that now rather than down the line when it's harder to prove things.

Household charge

That only applied in 2012. But if you didn't pay it back then you certainly will now. and it's €200

LPT

You need to register and pay this. And this is where they catch you for the household charge. As that's now in the revenue online system.
 
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cremeegg said:
€280,000 mortgage at 4.5% is only €1,050 interest per month, giving a deductible of just €787
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280,000 X 4.5 % = 12600 annually. So 75% is 9450. But in 2013 it was only 3 monhts. 1050 X 3 = 3150 @ 75% is 2362. Am I miscalculating? The clock changes aren't helping me today.
 
Thanks all, if anybody ever up in Scotland let me know as I owe you a few pints.

I have got the ball rolling with RTB, they sent me a link which doesn't open but I have let them know but I presume they are off today (tomorrow is another day). I have got my BER guy up and running too.

I didn't realise you could claim for W&T on stuff already in there, I will do a list Bronte, thank you.

I did spend about 4.5k on sliding wardrobes, painting and fancy carpets around July 2013 which I could say was for upcoming renters, that was the plan at the time. I will get on it tonight when I'm home.

Be safe out there.
 
JohnMc said:
I did spend about 4.5k on sliding wardrobes, painting and fancy carpets around July 2013 which I could say was for upcoming renters, that was the plan at the time. I will get on it tonight when I'm home.
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Pre letting expenses are not allowed. (painting) You can put the wardropes and carpets under wear and tear though. It does not matter that those items were purchased originally for you. What matters is that they are in the property for the tenant's use. As you purchased the wardrobes in 2013 you can put that 4.5K down and that gives you a W&T of 562 alone.

Yes do a list. There are sometimes debates on here as to what is or is not an item that is properly considered a wear and tear item.

Instead of buying us a pint can you instead let us know how you get on and use the money on an accountant. There are a few on this very website that would be able to do your returns and that costs is also tax deductable.
 
I hear you Bronte. I will work more on it this week. A friend of mine is an accountant and I was hoping to bring it to him as much as I could completed and then he take ver, but I may get one too as my friend is extremely busy.
 
cremeegg said:
Sorry Bronte, my bad.
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My accountant emailed me today. Because of HAP I'm due a refund, so I'll put that against prelim for next year and I'm still overpaid so Bronte is a happy camper today. Might even rise to a bottle of bubbles to celebrate.

A couple of things I missed which might help you:

- mortgage interest is now 80%
- but I can claim back 100% for social welfare tenants in 2019 (another bloodly procedure/process with rtb I've to figure out) that is backdated to 2016 or 2017.
- Above (helping landlords with social welfare tenants with extra 5% annually) of course is now moot because they've brought 100% back from 2019 anyway
 
JohnMc said:
I hear you Bronte. I will work more on it this week. A friend of mine is an accountant and I was hoping to bring it to him as much as I could completed and then he take ver, but I may get one too as my friend is extremely busy.
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Friends are not good as your professional - in general. Don't you dare go near any accountant for another couple of weeks. They are very stressed currently as it's the tax deadline.

Instead focus on getting all the figures together. Put all your receipts into one binder, per year, and put in the interest cert, and copy of annual bank statements and start working on putting everything in order.

I got my accountant via this website. And an excellent choice it was.
 
JohnMc said:
I have got my BER guy up and running too.

.
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Much use that is to you, it never ceases to amaze me the things that people realise they ought to do but needn't do. At least it's cheap and tax deductable. Plus you'll learn how putting in better lightbulbs is so important to the BER rating.

Is your property in a RPZ? (City of Dublin/Cork/Galway) if yes you need to increase the rent.
 
How are you doing Bronte.

I saw that on the Revenue website about social welfare recipients, all my tenants are working so it is not relevant.

I have two good friends who are accountants and one has just completed his tax exams. Being honest one of them (friend since day one) told me years ago that Revenue don't care about people like me, obviously this was terrible advice but I can't blame him as I should have done research. My other friend has been at me every year or so to register with RTB but I have just emailed him to see would he do up the figures. He is on top of his game so this is real low level stuff, but I will see what he says first. If that doesn't work out I will look for accountants.

Thanks for your help.
 
Property is in Limerick Bronte, rents are high there too and my current tenants are getting a very good deal which they know and they have stayed there a long while.
Lease agreement is up in March so I may put it up, need to give them notice too so will make call soon.
 
JohnMc said:
I have two good friends who are accountants and one has just completed his tax exams. Being honest one of them (friend since day one) told me years ago that Revenue don't care about people like me,
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Stay away from him. LOL. Revenue love people like you. They get to hit you with fines and penalties and of course they don't care, because they'll catch you in the end. You need an accountant who deals with landlords returns.

If Limerick is not in a RPZ it's likely to go into it soon. Make sure you abide by the notice rules.
 
JohnMc said:
Being honest one of them (friend since day one) told me years ago that Revenue don't care about people like me,
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I think that is true. Revenue don't care about people like you. But what does that mean. I suggest it means put your returns in on time every year and in reasonable shape and Revenue will never think about you.

It does not mean you can simply ignore them altogether, as I think you have learned.
 
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