Rental Income and Tax Liabilities

S

SouthendNil

Registered User
Messages
3
Question regarding rental income and tax liabilities. I jointly own a property that has rental income and has done so for the past 5 years. My ex receives the income in to his account and I was of the understanding that returns had been made on this income, though now I'm not so sure. Is there anyway, I can find out if he has filed returns for this income and if he hasn't am I liable here, given that I haven't been in receipt of any of the income. I think the tenancy might be registered with the prtb in my name. Thanks for your help.
 
If tax returns had been made than the income would presumably be split between you and taxed likewise. I don't think it's relevant who actually physically received the money. Revenue can tell you zero about your ex. I suggest you need to talk to him.
 
I suggest the last person to ask is revenue. You could open up a can of worms. You need to check with the PRTB about the registration and as Bronte suggested, your ex about the actual income and take it from there. Perhaps email your ex enquiring about it so you have a record if you need it in the future.
 
If you jointly own the property was there any agreement made that you would not receive any of the income - was it included in maintenance payments? Can you prove that he receives all the rent - Is the rent paid into his bank account or paid in cash? Another factor to consider is are you jointly assessed by Revenue or do you both do your own return. Who pays the LPT? You should contact the PRTB regarding the registration . I would not contact Revenue until you have sorted out the above and then only if you have a liability.
 
Last edited:
There is no agreement in place, the money is always paid in to his bank account by the tenant. I can if necessary prove that he receives all the rent. We are not jointly assessed. He had paid the LPT though I would have been the point of contact for tenants. So on that basis, would I be expected to include this income (or half of it) in my return?
 
Just saw this on: https://www.independent.ie/business...swering-your-property-questions-31399519.html

" Rental profits arising from an investment property are allocated to each spouse in proportion to their share of ownership. If the property is owned 50/50, then the rental profit should be split equally. It is not possible to 'elect' one spouse to be taxed on a disproportionate amount, any more than you could elect to be taxed on a portion of their employment income, says Barry Flanagan, Tax Manager with Taxback.com."

If you don't receive any of the rent it would seem unfair to you to have to pay tax on it but Revenue will apply the law without much empathy ! Why are you the contact person if you don't receive any rent. You may need professional advice.
 
You must log in or register to reply here.
Back
Top