There are (at least) two seperate issues here.
1) The NPPR or second home tax as you call it has not been paid so unless you pay that the sale will not go through. The penalties for not paying this are huge so it is a serious problem.
2) Your tax liabilty with revenue. This is not all that bad as you can back register with PRTB (you have to pay double for late registration for every year) so you can avail of the tax concessions.
As you are in serious NE and the bank are forcing the sale, I'm not sure what happens here. Either way you are not in as bad a situation as you think cos after all the bank wants to do the deal and you really have not much to lose.
You can progress to deal with KBC in respect of selling the property and postpone any dealing with the Revenue as one is not dependent on the other. If KBC force a sale of the BTLproperty the unpiad property tax will be their responsibility as it will need to be paid before title can be passed on to a purchaser. However any tax due on RI is a separate issue and you can either address this yourself with the Revenue in oline with Elcato's advice or hope that Revenue will not chase you for it. It's an income tax liability and has nothing to do with the sale of the property!
Just to clarify a minor point, the PRTB registration fee applies per tenancy (up to 4 years) and is not an annual charge. Good advice otherwise though.
I would also add that if the interest bill each month exceeds the rent by €200, it is highly likely that no rental profit was made, even allowing for the 75% restriction on interest. Hence there may not be a significant income tax liability.
In short, yes. See the PRTB website for full details.So, do we have to register for every tenant we've had? Only been two since 2008 anyway.
The interest bill has been at least 900 euro every month since 2008. Rental income has been 700 euro for years, may have been 750 euro pm initially.
So, basically can we now register with PTRB, plead ignorance, and figure out difference between rental income since 2008 (can check bank statements) versus interest paid (can check KBC's annual statements to us)? Also, we can take house insurance costs from it (probably 300-400 per year)
How can the Revenue discover that rental income has been accrued for 5-6 years? Will something to do with house sale/inevitable registration with PTRB flag it with them?
Actually quite a major point so apologies for mistake. I this case you would have to register twice at double bubble but still is only < 400 in total.Just to clarify a minor point, the PRTB registration fee applies per tenancy (up to 4 years) and is not an annual charge
If the OP has had a different tenancy agreement with different tenants then each tenancy agreement would require PRTB registration.Just to clarify a minor point, the PRTB registration fee applies per tenancy (up to 4 years) and is not an annual charge. Good advice otherwise though.
I think you can only register the current tenancy, backdated to when it began (maximum of 4 years ago, as tenancies run in 4-year cycles). I don't think that you can retrospectiviely register a tenancy which has ceased. Where this leaves you vis-s-vis claiming the tax relief on mortgage interest for rental income received during an unregistered tenancy I don't know, but I would suspect that you wouldn't be able to claim it.
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