Rent Relief and mortgage interest relief Question

M

Muskoka

Guest
Hi all,
myself and my brother bought and apartment three years ago. We were both claiming mortgage interest relief. About 14 months ago i was offered a job in Canada and i have been working here. i took a tenant into my room in the apartment. He pays rent but it does not cover the mortgage, i also add to it each month.
My brother continues to live in the property also.

So my tenant wants to apply for rent relief, what effect on my mortgage interest relief will this have, when i provide the details to him


Thanks
 
Sorry to be the bearer of bad news but you should have stopped claiming trs when you left the apartment. You had an obligation to inform Revenue that it was no longer your PPS. I would suggest you contact Revenue now and inform them that you have been erroneously claiming TRS and come to an arrangement to pay them back. It is likely that Revenue will find out anyway eventually and start looking for interest and penalties.
Sybil
 
You have knowingly or not being defrauding the state in two ways.

You are not renting a room as you do not live there. You have not paid tax on this rental income. You should not be claiming TRS as it is not your principal residence.

Inform revenue and you will have to pay back whatever taxes are owed and possibly some penalties.
 
ok thanks for the replies. so i am going to contact the revenue and see what i should do now. How will this effect my brother who continues to live there and get interest relife
 
Your brother as he lives in the property should be able to qualify for rent-a-room relief I would have thought depending on the size of the rental income and thus have no liability to tax or penalties. Was the rent paid over to your brother or to you? If to your brother then you should be okay and only have the repayment of TRS - given you are working outside the State complicates matters and it might be worth consulting a professional tax advisor before approaching Revenue.

He should however have been declaring the income received, though I think he would have until the end of October to do this (not sure about the dates for this though).
 
i received the rent, and placed it towards my half of the mortgage. the room is no longer being rented. how does this change the impications.

thanks
 
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