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I suspect that you cannot effect such a refund in order to get back into the rent a room limit but I could be wrong. Probably best to ask Revenue, or better still, get independent professional advice.My rental income for 05 was €10320 - I was unaware until recently that I had to fill out a self assessment income tax return - therefore I have done no returns and paid no tax. This year I'm doing returns for 04 and 05. For 05 my tax liability is €10320 x 42% = €4334.4, however can I write a cheque to my tennants for €10320 - €7620 = €2700 i.e €1350 ea? This would bring me back in line for the rent a room scheme for 05 and hence have no tax to pay. I would then declare rental rincome as rent a room scheme for 05 as €7620.
Did you buy your appartment within the last five years and if so, did you not have to pay stamp duty on it because its your ppr? If so, the revenue will be clawing back the stamp duty if you exceed the 'rent a room' tax exempt earnings of 7,600 euro p.a. If you exceed this figure in a calendar year, you will be classed as an investor.I have a 3 bed appartment and it is my ppr. I rented it out to two tennants in July 04 - they have not asked for rent relief. I have the same tennants since. My rental income for 04 was €5160. This is under the rent a room scheme limit of €7620. My rental income for 05 was €10320
Proceed with caution. They don't have to ask! The revenue form for rent relief asks for the landlords name/address/pps - but they dont necessarily have to supply the pps. Revenue will be quite happy to dig this out themselves.they have not asked for rent relief.
This has been discussed/suggested in a previous aam threads on the subject (run a search). Have you been issuing receipts to your 'tenants'?For 05 my tax liability is €10320 x 42% = €4334.4, however can I write a cheque to my tennants for €10320 - €7620 = €2700 i.e €1350 ea? This would bring me back in line for the rent a room scheme for 05 and hence have no tax to pay. I would then declare rental rincome as rent a room scheme for 05 as €7620.
The clawback only applies if you move out before the 5 years is up, and rent the property in it's entirety.
I don't think you're liable for stamp duty clawback. You're just renting out rooms in your PPR. The clawback only applies if you move out before the 5 years is up, and rent the property in it's entirety. Because you've exceeded the RARS allowance you are liable to tax on the total rental less any expenses.
Can you provide any evidence to support this statement. For the record, I don't believe you are correct.
Can you provide any evidence to support this statement. For the record, I don't believe you are correct.
This debate arrose on AAM before.I even checked this out with Revenue and was assured that this was the case! Any links so that I can read up on it?
This debate arrose on AAM before.
Revenue state that any rent recieved other than under the "Rent a Room Scheme" result in a stamp duty clawback.
As part of the Rent a Room Scheme rents under a certain threshold remain tax free. Does that mean that rents above that threshold are under RaRS but without the tax benefits??? Don't think anyone has ever fully cleared this one up, at least not to my knowledge.
As part of the Rent a Room Scheme rents under a certain threshold remain tax free. Does that mean that rents above that threshold are under RaRS but without the tax benefits??? Don't think anyone has ever fully cleared this one up, at least not to my knowledge.
No ubiquitous, my daughter is thinking of buying an apartment and renting out a room. We checked it out with Revenue and I was told that the clawback only applied if property was rented in it's entirety. The only thing they pointed out was that if she went over 7620 in income from rental, then the whole amount would become liable for tax. They said clawback would not be due.
I'm not saying it's wrong! I'm just questioning it. No documents, which I've read, clearly state this is the case.This is the information I was given.
This debate arrose on AAM before.
Revenue state that any rent recieved other than under the "Rent a Room Scheme" result in a stamp duty clawback.
To be fair (and this has arose on AAM numerous times too) Revenue aren't there to give advice.A lot of people will be affected if the advice given by Revenue is not correct.
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