PRTB and REvenue

[mohenley]

Hi

Do you need to submit your income to the Revenue for the rental property each year?

My husband was unable to sell our flat 2 years ago and I had bought another house (in my name) so we had to rent it out. We registered with the PRTB and the rental we received from the tenants just paid our bills. We have not made any profit.

Furthermore, one of the tenants left and another new one arrived 6 months ago and I forgot that I should have notified the PRTB about this. What will happen in this case?

Also I am also just wondering are we liable for stamp duty as we have another property. The flat is solely in my husbands name (he purchased it before we married) and the house is in my name and he is guarantor?

 

[Breninio]

Yes you need to declare all rental income/expenses details on your annual tax return. Yous should get any late tax returns filed asap. You mention that the rental income on the flat only covered your bills. Just to note, it is only the interest portion of mortgage repayments that you can claim as an expense, so bearing this in mind is it still the case that no rental profit from the property? If you are correct that no rental profit then there shouldn't be any interest/penalties for late filing but you should still get tax returns in asap.

You will need to register the new tenancy with the PRTB in order to get a deduction for the interest on your mortgage in calculating rental profit. Provide the tenants are still in the property it should be possible to amke a late registration. This costs €140.

The stamo duty position on the flat will depend on a number of things. When was the flat acquired? Was stamp duty paid at time of purchase? How long was it occupied as sole or main residence?

 

[mathepac]

... Do you need to submit your income to the Revenue for the rental property each year? ...

Yes all taxpayers are obliged to return all their income for assessment each year.

... My husband was unable to sell our flat 2 years ago and I had bought another house (in my name) so we had to rent it out. We registered with the PRTB and the rental we received from the tenants just paid our bills. We have not made any profit...

Unfortunately, none of that removes from you your obligation to return your income for assessment.

... Furthermore, one of the tenants left and another new one arrived 6 months ago and I forgot that I should have notified the PRTB about this. What will happen in this case? ...

You will be unable to claim tax relief on the mortgage interest paid during an unregistered tenancy.

... Also I am also just wondering are we liable for stamp duty as we have another property. The flat is solely in my husbands name (he purchased it before we married) and the house is in my name and he is guarantor?

Sorry, do you mean there is a third property or is it just the rented flat and your PPR?

 

[mohenley]

Thanks All,

I would need to figure out the mortgage repayments for rental profit, I was thinking of whole mortgage repayment.

I have registered the tenancy with PRTB, this is a change of tenant (2 original still there and 1 new tenant) and looking at PRTB website this is ok - there is no charge but you just need to let them know.

Quote from PRTB

If at least one of the tenants remain in the rented property and the other tenants are replaced by new tenants, then this would be considered an update of the tenancy details. If there is a change of rent you are required to notify the PRTB and when doing so, you are required to advise of any other change of the tenancy details that have arisen in the interim - no fee is payable when providing an update of tenancy details. The tenancy registration form, which is downloadable from this website, can be used for this purpose also.

The flat was acquired in 2004 and husband lived there until 2008, no stamp duty was paid as it was first time buyer.

We now have 2 properties, the rented flat (which we could not sell) and the property i have purchased since and now live in.

 

[Howitzer]

My husband was unable to sell our flat 2 years ago and I had bought another house (in my name) so we had to rent it out. We registered with the PRTB and the rental we received from the tenants just paid our bills. We have not made any profit.

You may not have made a profit but may have had a tax liability. Only 75% of mortage interest can be offset against rental income, and no principle can be offset.

Do a search for allowable expenses. Add up those which are applicable and take from your income. Is there an excess?