Rental income advice - Revenue worries

losingsleep

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My husband is terminally ill and I believe he received poor advice. I am not sure what to do.
Background is that he had a house but was given bad news health wise. He moved in with me to care for him and rented out the house. He never registered and as time went on he became unable to work so the mortgage went into arrears. We sat down with financial adviser and solicitor to do wills etc and regarding his house he was told he was going to offer it back to the bank through the adviser. The bank refused every offer so the advice was don't worry you'll be dead. After six long years the bank have offered a surrender subject to vacant possession but the tenant won't leave. It's worrying me though because my husband has lived passed his life expectancy which is fantastic but the tenant now wants to claim rent allowance.

Can anyone advise please? He gets an invalid pension and I am his carer.
Is it too late to sort out?
 
Are we in trouble? My husband was genuinely told don't worry you'll be dead.
He has kept all the local property tax paid. Would that stand in his favour?
The trouble is he could die at any time and that house is in his name only.
 
Sorry to hear about your situation.
It must be stressful.

I presume that the main issue is what tax (and, presumably now, interest/penalties) apply to undeclared rental income?
If this is not dealt with now then it will almost certainly have to be dealt with when your husband dies and his will goes to probate.
It would be better and perhaps slightly easier to get it dealt with now.
I don't think that the LPT having been paid up to date is going to make any difference in this context.

As already suggested you probably need to get professional help as soon as possible.
 
I am sorry to hear about your husband. This is a very worrying time for you both. Is there a life assurance policy associated with the house? Has this been paid up to date? Can you find any paperwork related to that or evidence of direct debits to pay for it? Hopefully someone here can recommend a tax accountant. See if you can pull together the rental income received if it was paid to a bank, any receipts or evidence of payment for repairs to the house, and request copies of interest certs from the bank. These will all be needed for the tax accountant who should be able to advise you on next steps. Hopefully gathering all the required paperwork and engaging assistance will allow you and your husband to progress this issue and hopefully free up some space for you to concentrate on health and the remaining time you have left together.
 
Yes the stress and worry is unbelievable. I can't believe that we were more or less told don't worry he'll be gone. Every offer made to the bank was refused. They have no empathy at all and unfortunately as he got sick some things went unpaid and a life insurance policy was one. I have met another person in the same situation. There is life insurance but their bank is refusing to help until after the death.
My husbands bank came back and offered a voluntary surrender, we offered this years ago and they said no. They want vacant possession as a condition but the tenant won't leave. My husband is not up to the rtb process, he is wheelchair bound now and on assisted breathing and our next step is a feeding tube and ceiling hoist.
What a mess.
 
I can't believe that we were more or less told don't worry he'll be gone.
By whom?
unfortunately as he got sick some things went unpaid and a life insurance policy was one. I have met another person in the same situation. There is life insurance but their bank is refusing to help until after the death.
I don't understand the relevance of the life insurance policy here in the context of the undeclared rental income issue?
In any case it's irrelevant if he failed to keep payments up.
My husband is not up to the rtb process, he is wheelchair bound now and on assisted breathing
I presume that you could act on his behalf?
 
First things first.
1) Ask the bank for a statement of what is owed regarding the mortgage.
2) Get a rough idea how much the house is worth. Have a look at daft for houses in the area and asking prices OR tell an estate agent you are going to sell after you get vacant possession and ask them for a 'walk by' value.
3) Tot up what you think he has receieved in rent and over how many years.
 
He was just told month after month don't worry the bank will take the house or put something called a receiver to take charge but neither has happened. He went to a solicitor to make a will when he was well enough who put us in contact with a financial adviser.
 
I mean no disrespect here - but are you legally married? You reference your husband leaving his house and moving in with you when he became ill, hence my question.

It's relevant when he passes if his will leaves assets to you; so keep that in mind.

As far as the rental property goes I'm with @T McGibney here - your husband takes priority here; the rental property can wait and tax returns can be handled if need be as part of the probate process.
 
I mean no disrespect here - but are you legally married? You reference your husband leaving his house and moving in with you when he became ill, hence my question.

It's relevant when he passes if his will leaves assets to you; so keep that in mind.

As far as the rental property goes I'm with @T McGibney here - your husband takes priority here; the rental property can wait and tax returns can be handled if need be as part of the probate process.
Hello we got married during his illness but that house is all he has/had. I care for him in my home which I bought before we got married. This home is in my name only and the mortgage is up to date with payments.
 
By whom?

I don't understand the relevance of the life insurance policy here in the context of the undeclared rental income issue?
In any case it's irrelevant if he failed to keep payments up.

I presume that you could act on his behalf?
I could look into acting on his behalf but I thought that's what the financial adviser is doing with the bank. I'm already up day and night with his care needs and looking after our children.
 
He was just told month after month don't worry the bank will take the house or put something called a receiver to take charge but neither has happened.
Told by whom?
The lender repossessing the house wouldn't eliminate the need to deal with the undeclared rental income tax issues.
 
With the rtb is it one tenancy that needs to be registered or one for every year? It is very confusing.
 
This home is in my name only and the mortgage is up to date with payments.
Once you are married the home that both of you and your children live in will be considered to be the Family Home within the meaning of the Act.

You only need to register with RTB once for now.

Is the tenant paying rent?
 
As suggested you need a professional tax advisor. It is possible to restate your earnings for some past years, I don't know the limit. If you owe taxes on the rental income, perhaps pay it. To get rid of tenant, you need to give the required period of notice in the correct form. Again, get professional advice here.

Finally, I wish you well.
 
I'm a warmer person than this and my original post suggest and I wish you well with all of what you are going through. Revenue can (and probably will) impose punitive charges on the arrears due to them. Make no mistake, that's what they do and you can only hope for a sympathetic Revenue team to deal with your claim.

I would advise that you do not delay in contacting a professional Tax Advisor. You will be advised of what expenses can be processed and he/she can begin matters. If you delay you could be making matters worse and have Revenue contacting you before you contact them.

I know your tax matters appear daunting now but you are the only person who can alleviate matters. I wish you well.
 
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