Landlord Receiving Rent Allowance for first time

[lost09]

Im wondering if someone could shed some light on this for me, I have decided to rent out my affordable home as Ive taken a 15% pay cut and I just cant afford it anymore, so Ive decided to move back home for a year. Ive so far been unable to rent out the spare room(its a single one too)

I rented out the apartment 2 years ago also when I lost my job but moved back in when i found work.

I never registered as a landlord as its an affordable home and against the rules, I made absaloutely no profit from it either, mortgage was €950 (interest only) and incoming rent was €900.

SO my problem is that I have a friend who is interested but wants to pay by Rent Allowance from the HSE, meaning I will have to give my PPS no and register as a landlord. What tax - if any would I be liable to pay? I am going to approach the council and advise them of my circumstances and request permission to rent it out... Apparantly they are allowing some to do so due to the recession and job losses. But my worry is the revenue!!

 

[Maggs065]

What tax - if any would I be liable to pay?

You pay tax on the total rental income not the difference between mortgage and the rent.
So yes you are required to pay tax and also to register as a landlord (PRTB) and pay NPPR and stop claiming TRS. You should have done all of that a few years ago when you rented out the house first.

 

[oldnick]

TRANSLATION OF THE OP's QUERY ....

.. I know that most of you pay tax and follow all the rules laid down for landlords with the result that many of you are in a really bad way financially.

I ,however, decided it would be far more profitable if I broke the law in several ways.
E.G.
a)Due to certain rules and regulations I obtained an "affordable property" which was much cheaper than similar properties that you may have bought at the same time.
b) I broke those rules and regulations and rented out the property.
c) I didn't bother with NPPR, BER, PRTB or all those other expensive acronyms.
d) And,of course, I didn't declare anything to Revenue

Now -as you people are the type that follow all the rules and lose money which seems really silly , then you won't mind giving me free advice -as long as it doesn't involve me having to pay anything to anyone.

 

[lost09]

Thanks oldnick, cause I needed that bizarre translation

FYI: I bought an overpriced 'box' in a bad area, was given 8 times my salary for a property that was not worth a cent, but due to personal circumstances I felt I had no option but to buy, and was pushed into it by certain family members.

-Well aware of the BER rating on the apartment btw
-No didnt register with PRTB, as I didnt have a cent to rub together at the time
-Never heard of NPPR

Im left with an absurd clawback, and a worthless property. They were selling for 199,000 3 months after I signed the contracts and stupidly agreed to a 340,000 valuation and a 280,000 mortgage. My bad!

I dont have 1450 per month to pay my mortgage and management fees so renting it out while I look for a higher paid job and move back into somewhere that was actually MY HOME. I have no option but to rent it out, I dont and will not default on my mortgage instead.

Ill think again before I come onto AAM if this is the type of idiotic response I get. You dont know peoples circumstances.

 

[Knuttell]

But my worry is the revenue!!

And so it should be because when not if they catch up with you they will assume the property to have been rented from the very first day you took possession and they go through you for a short cut,if you want to do this you are best advised to follow all regs to the letter the law,its just not worth it otherwise as you will be in far far greater difficulties when they impose fines and penalties etc on you.
I appreciate your position,its a hard station no doubt about it,dont make a cross for yourself though life is too short to be looking over your shoulder.