Help declaring rental income

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fergieman101

Registered User
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Hi People
I am looking for some help to declare rental income I received for 2013.
I am renting 1 property.
This is my first time doing this as I am only a landlord since 2013.
I am an employee of a company earing a salary. Im not sure if the "income" from this affects my salary with my work.

So what I've learnt from reading some forums and website

My rental income on the property for the year was €7,200 (600 per month)
My mortgage repayments per month for 2013 were €1,100
My mortgage interest for 2013 was €5,100 (I can use 75% of this)
My house insurance for 2013 was €673
My property management fees for 2013 was €230
A shower was replaced and repaired in 2013 at a cost of €890

I'm left with €1582 (7200 - (75% of 5,100) - 673 - 230 - 890)
Is this the amount I need to work out in terms of tax and if so how do I work it out?
 
You seem to have omitted a deduction for the PRTB and your Capital allowances (12.5% over 8 years). Then you might have a lower charge.
 
What is capital allowances?
I thought I wasn't able to deduct PRTB? Or was that NPPR.
What about the LPT?
 
Capital allowances are allowed over 8 years on fixtures and fittings (beds, furniture, white goods etc)

You can allow PRTB, LPT is debatable but I deduct that as well.
 
Thanks for all your help.

In terms of working out the actual tax on the remaining amount, any one got any guidance on how to work it out?
 
Agent 47 said:
Capital allowances are allowed over 8 years on fixtures and fittings (beds, furniture, white goods etc)

You can allow PRTB, LPT is debatable but I deduct that as well.
Click to expand...

Can this include captail before I started to rent the property?
 
fergieman101 said:
What is capital allowances?
I thought I wasn't able to deduct PRTB? Or was that NPPR.
What about the LPT?
Click to expand...

You absolutley can deduct the PRTB.

We've had endless debates on here on NPPR being deductable. I've deducted that and the LPT and am ready to deal with an audit and appeal it all the way if necessary.

Have you had no repairs, did you buy anything, have you a list of all the contents, and receipts or reasonable values for your wear and tear calculation.

You've forgotton life insurance, if you have the type that's called 'term insurance' then it's deductable also. Not the types of insurance that are also a savings product.

An accountant I would recommend, particularly as it's your first year, it will set you on the right path, she/he might pick up things you forget. It's relatively cheap and you can deduct it as well.

I hope you've paid your LPT, otherwise there is a 10% surcharge on your tax returns.

Did you advertise the place, that's deductable, what about gardening. Did you pay for a lease, also deductable.

Where your salary comes into this, if you have a profit, you may be hit with the higher rate of tax.
 
I had a couple of the rooms painted before the tenants moved in. I also painted a ceiling myself (can I claim for that)?
I did buy a new bed/matress and furniture for 1 of the rooms - probably €500 in total but I don't have any receipts now for it.
Do I need to include receipts when I submit?
 
fergieman101 said:
I had a couple of the rooms painted before the tenants moved in. I also painted a ceiling myself (can I claim for that)?
I did buy a new bed/matress and furniture for 1 of the rooms - probably €500 in total but I don't have any receipts now for it.
Do I need to include receipts when I submit?
Click to expand...

You need receipts because how else do you prove that you spent the money?
 
I might be wrong, but I don't think you can claim for painting, furniture, carpets, etc., if this has been done before letting the premises out. I made this mistake in 2012.
 
Well I had to buy furniture and paint the house to get it to a standard that would be acceptable for the tenant before they moved in.
 
fergieman101 said:
I had a couple of the rooms painted before the tenants moved in. I also painted a ceiling myself (can I claim for that)?
I did buy a new bed/matress and furniture for 1 of the rooms - probably €500 in total but I don't have any receipts now for it.
Do I need to include receipts when I submit?
Click to expand...

You cannot claim for the rooms being painted before a tenancy when it's your first tenancy, as pre letting expenses are not allowed.

In between tenancies it would be allowed. That's the rule. But you can claim wear and tear on the furniture and carpets.

You can never claim for work you yourself do.

You don't need receipts, but you should keep receipts. The bed is quite clearly there etc. Do you have a credit card or bank statements, you hardly paid in cash. That will do just as well. But from now on you keep a receipt for everything. And only use one bank account for the rent and expenses and nothing else.
 
Drakon said:
I might be wrong, but I don't think you can claim for painting, furniture, carpets, etc., if this has been done before letting the premises out. I made this mistake in 2012.
Click to expand...

You are correct about painting, but not about furniture and carpets. If you haven't written them off as W&T then do so now. Or else redo 2012 !
 
Actually , here is some information. If you're rental income after deductions is below €3175 per annum you do not need to declare this by the end of October and you do not need to fill in a TR1 form.
You can declare this amount on a Form 12
 
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