Someone mentioned earlier that by registering with the PTRB this action would somehow inform the lender of the change of status of the property from owner occupied to rented.
How is this the case?
There is absolutely no evidence of this, bankers have better things to do then look up the PRTB website of rented properies, which is quite a mess. For revenue it is a different matter.
There is absolutely no evidence of this, bankers have better things to do then look up the PRTB website of rented properies, which is quite a mess. For revenue it is a different matter.
No reason except if you come to their attention on another matter and they decide to audit you. They may check bank statements so you may have to come up with reasonable explanations for payments going in for certain periods. If you fail to admit to owning an account then alarm bells will ring.To be honest I can't see how they can catch me out for those last three years. There is not proof that I had tenants in the place. Unless they look into the ESB. But why would they? If everything is above board this year, why would they delve into the past??
No reason except if you come to their attention on another matter and they decide to audit you. They may check bank statements so you may have to come up with reasonable explanations for payments going in for certain periods. If you fail to admit to owning an account then alarm bells will ring.
This business of the revenue "checking bank statements" is pure scare mongering.
Do you have any idea the lengths that revenue must go to to get access to someones personal bank records?? They cannot just call the bank and ask for them. They do do this when they are chasing the big boys and criminals but the thought of them coming after me with the same venom is not something I am concerned with.
...if you come to their attention on another matter and they decide to audit you. They may check bank statements...
There is absolutely no evidence of this, bankers have better things to do then look up the PRTB website of rented properies, which is quite a mess. For revenue it is a different matter.
Well I hope the checking bank statements thing isn't scaremongering cos I'm sorry but the tax dodgers who have posted on here make my blood boil.
There is a legal requirement to register with the PRTB, there is a legal requirement to pay taxes on income, there is a legal requirement to inform revenue if you rent out a property within the stamp duty claw back time limit.
I understand that people have been struggling and desperate times call for desperate measures but it is a kick in the teeth to all of us who have been compliant and who have had to make sacrifices to do so.
Defaulting on a mortgage has personal implications for the borrower. Defrauding the taxpayer has implications for the rest of us. I know the mods don't like us to reference other posts but a check on your other posts Favourite shows this isn't the only non payment of tax issue you've had.
This business of the revenue "checking bank statements" is pure scare mongering.
Do you have any idea the lengths that revenue must go to to get access to someones personal bank records?? They cannot just call the bank and ask for them. They do do this when they are chasing the big boys and criminals but the thought of them coming after me with the same venom is not something I am concerned with.
Well I hope the checking bank statements thing isn't scaremongering cos I'm sorry but the tax dodgers who have posted on here make my blood boil.
I understand that people have been struggling and desperate times call for desperate measures but it is a kick in the teeth to all of us who have been compliant and who have had to make sacrifices to do so.
If you were me then what would you have done.
Besides because of the shortfall I would have no tax liability of those years anyway.
Would you have called the tax office to tell them that you were renting out your apartment during the stamp duty claw back time and duly sent them a cheque for 35k when you had the princely sum of 200 euro in your bank account. Please do tell me what you would have done?
Do you not see why tax compliant tax payers would be annoyed with you?
To answer your questions, you could have sold the apartment, then you would not have been liable for the stamp duty. You choose not to for whatever reason. You could have come to an arrangment with the bank to repay the negative equity, or probably legitimately could have gone bankrupt where you were working.
You also chose to rent it out and not declare the rent, and you did this because you knew you would be liable for stamp duty.
You are incorrect that due to the 'shortfall' you were not liable for tax on rent, not true, but if you had registered with the PRTB you would have been able to offset mortgage interest against rent.
Nevertheless you are trying to get back on track, and that's good. But I'd be worried about your bank accounts if I were you. And there's the little matter of tenants who claim social welfare rent or tax rent relief without informing the landlord. But you may be lucky and fall thru the net.
I knew my tenants, none of them claimed rent relief.
Can you please explain how I was being naive in my previous post??
OK, so can we agree the consensus would appear to be, the guy needs to go get proper advice, with a view to regularising his position as soon as is feasible for him to do so.
If he gets a PRTB registration, it's quite likely his net rental income will be below 3,174 and he won't be required to file under self assessment, so he'll escape interest on the late tax (AFAIK).
The rights or wrongs of the current interest deduction rules don't really come into it.
(Thread closed!)
sorry mandelbrot, does this mean that if the net rental income I get after mortgage interest, managment fee, expenses etc is 2K I dont pay income tax?
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