Brendan Burgess
Founder
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Friends of mine have an investment property which they have let upt to now on normal terms to a tenant. He is now moving out and their 25 year old daughter wants to move in. They are not proposing to charge her any rent.
I have told them that this is fine and that there are no tax consequences of this.
1) She will not be treated as getting a gift equal to the annual rent of €12,000 (This wouldn't matter much as it's so far below the threshold)
2) They won't be regarded as getting income of €12,000 for tax purposes.
As lettings to relatives are outside the scope of the PRTB, they do not need to register. However, their daughter may acquire rights, so they should do a short note of their agreement as a younger brother may want access to the apartment later.
They might charge her a reduced rent of €6,000. They will be subject to normal income tax on this. They don't have a mortgage, so they will have very little to claim against it.
I forgot to ask them about the insurance arrangements. Presumably the building is covered by the management company and it doesn't matter if it's rented or not. It would be up to the tenant to insure her own contents. I don't think that the furnishings are that valuable if they were damaged by a fire.
I have told them that this is fine and that there are no tax consequences of this.
1) She will not be treated as getting a gift equal to the annual rent of €12,000 (This wouldn't matter much as it's so far below the threshold)
2) They won't be regarded as getting income of €12,000 for tax purposes.
As lettings to relatives are outside the scope of the PRTB, they do not need to register. However, their daughter may acquire rights, so they should do a short note of their agreement as a younger brother may want access to the apartment later.
They might charge her a reduced rent of €6,000. They will be subject to normal income tax on this. They don't have a mortgage, so they will have very little to claim against it.
I forgot to ask them about the insurance arrangements. Presumably the building is covered by the management company and it doesn't matter if it's rented or not. It would be up to the tenant to insure her own contents. I don't think that the furnishings are that valuable if they were damaged by a fire.