Both. Property tax, the only form of wealth tax that works anywhere, is a recurring tax and is very hard to shelter. It also means that there's less left to inherit. I'm (probably) going to have a large inheritance, as is my wife, but I think it's wrong that it'll be taxed at a lower rate than the marginal income tax rate.
John FitzGerald, says Properties need to be taxed (( Properly)) to achieve fairer wealth distribution,
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Is commercial property subject to property tax, and if so, are you able to claim tax back?
As a landlord, you can claim most items as tax deductions except for the property tax. Hence any private landlords would be against changing the thresholds until that’s rectified.
If the thresholds change but a private landlord cannot tax deduct it would hasten further exits from renting. The yield will be driven lower
As a landlord, you can claim most items as tax deductions except for the property tax. Hence any private landlords would be against changing the thresholds until that’s rectified.
If the thresholds change but a private landlord cannot tax deduct it would hasten further exits from renting. The yield will be driven lower
Dr Strangelove
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You can’t claim tax relief on a tax!
I seen a survey suggesting 70% of young people consider emigrating for a better quality of life between 2022 and 2024,
around 12.5% actually emigrated, lots left to work in Construction follower by healthcare and education,
(young people are leaving to work overseas in areas we are experiencing shortages in Housing Tax and Cost of rent is a big factor when they make up there mind not to return,
I have son along with friends who emigrated with the intention of returning Most have changed there minds about returning,
all come from small families when the time comes there will be a lot of money from property Inheritance flowing out of the country,,
Stamp duty is an allowable expense when calculating CGT liabilities.
Yes, commercial rates, paid by the occupier.
T McGibney
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That's totally untrue.
Brendan Burgess
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I don't think that one should look at a particular tax as regressive or progressive. Look at the entire system.
Having said that, LPT is progressive on its own. Those without property don't pay it at all. Above a certain value, the rate is higher which is also progressive.
The LPT charge for properties with a market value greater than €1.75 million is calculated as the sum
of 0.1029% of the first €1.05 million of the declared market value and 0.25% of the portion of the declared market value between €1.05 million and €1.75 million and 0.3% of the portion of the
declared market value above €1.75 million.
But, as it's so low, it's not really progressive or regressive.
T McGibney
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Tenants in private rented accommodation pay it on the double Brendan, albeit indirectly.
T McGibney
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As are, for Income Tax calculation purposes, unrecovered and unrecoverable VAT, excise duties and carbon and motor taxes.
I presume you mean these tenants?
Local Property Tax (LPT)
The Local Property Tax (LPT) is payable on residential property. It is collected by Revenue.
www.citizensinformation.ie
T McGibney
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No, I was referring to the economics of rentals.
Let's say the LPT payable by a landlord on a privately rented property is €450. The landlord cannot claim tax relief on this cost. Assuming they are a higher rate (~50%) taxpayer, they must charge the tenants €900 to recoup this cost.
If the tenant was liable to pay the LPT, the cost to them would be €450.
It's a perverse system.
Previous thread going back to 2016 acknowledging this, post #16 onwards..
Why are investors leaving the buy to let market?
There is a report in today's Times from Sherry Fitzgerald saying that "for every one private investor who has bought in the market during the year to date, two have exited the market,” Ms Finnegan said, adding that it was having “a debilitating impact on the rental sector.” Any opinions on why...
www.askaboutmoney.com
Shortly before the introduction of RPZs ...
John is pointing out 70% of wealth is tied up in Property,
Can people not see if we don't achieve a fairer wealth distribution with property very shortly we will be in trouble inherited wealth is distorting property prices resulting in people who inherit wealth along with people who don't getting billions of borrowed and taxpayers money to help keep the show on the road for a little longer,
Can people not see if we don't achieve a fairer wealth distribution with property very shortly we will be in trouble inherited wealth is distorting property prices resulting in people who inherit wealth along with people who don't getting billions of borrowed and taxpayers money to help keep the show on the road for a little longer,
T McGibney
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That to me would suggest a severe paucity of real wealth in the country.
What do you suggest - divide all the nice houses in two?
Dr Strangelove
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Those estimates exclude DC pension funds.
Also DB entitlements which are a form of wealth.
you are correct not much holding the bottom in, If we are not careful the 70% will shrink to about 30% and our paper wealth will shrink by 40/50% in other words any of the 30% not in Property that can be moved out of the Country will get moved,
What Is happening is the 70 % of so called Wealth is so overvalued people who don't have the bank of Mon and Dad cannot afford to come and live and work or stay in Ireland on good incomes,,
Ireland will become the new Pub with no beer,
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