Parents are my tenants - What tax owed?

S

smithfielder

Registered User
Messages
16
Hi all,

Will speak to an accountant(recommend any?), but appreciate your advice here.

My father renovated a house into some apartments and to help me on the property ladder sold one to me. My mum moved into the apartment that I own and has been registered as my tenant with PTRB. She treats the place as her own paying all bills rates etc, so it has no cost to me except the Buy To Let Mortgage payments, the new second property tax and rental income tax.

How do I calculate the Rental Income Tax?

  • I have no deductions except mortgage interest.
  • My PAYE salary is 42K
  • Rental Income for 2009 is 12x€900 = 10800
Many thanks for your advice
 
You do have more deductions than that!!

You have wear and tear for a start (12.5% depreciation allowed on fixtures and fittings over 7 years). That is a significant amount to deduct on most premises!!

The kitchen/floor coverings/light fittings/appliances/heating system etc. for example is (presumably) yours and not your mothers etc.

Also, you can deduct the PRTB fee, any insurance policies you have in place and any qualifying mortgage protection premiums you might have and of course any repairs that you've had to pay for.

Are you doing your 2008 tax return? (I ask as you have 2009 written down-you don't pay your tax for 2009 at this time, you pay it for 2008).

You will be paying top rate tax (41% for 2008) on any profit you made and so you'll especially want to get the deductions in there ;-)
 

When did the tenancy start, was it in 08 0r 09.

Just say it is 09, not 08.

.what is the est of total interest jan to march
.what is the est of total interest apr to dec(restrict to 75%) i think not sure of exact date
if interest greater than 10800 nil liablity



expand on details to get more accurate answer.

if only started in 09- first tax return 09 due 31/10/10
if started in 08- tax return due by 31/10/09
 
even if the interest id enough to ensure no liability for one year in particular the OP should put in all deductions as the loss can be carried forward!
 
Thanks everyone,

Actually I am such a novice at this, and yes I realise that it is 2008 one that I need to have done by the end of this month, not 2009.

I also didn't realise that I didn't have to register a family member as a tenant, but it's done now.

I'm going to gather up all the documentation and update here with the figures. I appreciate your responses as it gives me a better understanding of what I can deduct etc.

Many thanks, S
 
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