If for example the original mortgage was for 40k and they re-mortgaged for 120k, is the correct apportioning of the interest to put against rental income 33.3% of all interest?
. Revenue use a guide of 3000 profit (if only one property) on Rental income for dealing with someone under self assessment.
I take it to mean that in general Revenue get suspicious if you have one property and don't declare at least 3K profit.
Are you sure that you're not confusing this with the fact that a PAYE worker with c. €3K+ in non PAYE income will be treated as self assessed? This happened to me when I hand c. €3K "income" from an ESPP scheme with the income tax paid via RTSO1.if you let ten properties and total profit was under 3000 you would be taxed as self assessed because it is seen as a business.
No, Revenue use this figure as a guide, it's not set in stone. But the reason I clarified re one property was that if you let ten properties and total profit was under 3000 you would be taxed as self assessed because it is seen as a business. If Returns are submitted as Form 12's for back years they may just process them on face value but Form 11's may be required in subsequent years, as I said nothing set in stone it's just a guide.
I never implied that OP could switch back and forth from year to year. The number of properties is taken into account as I am aware of an individual who had several Rental properties the majority of which where covered by "relief" i.e Section 23, Seaside resort etc., so that no liabilities were arising and they were informed by Revenue that they would have to Submit Form 11's as this was deemed to be a business venture.
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