Rental Income Tax on 2022 income

C

corkfella

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Hi, I'm due to speak to an accountant next week on this matter but I declared my rental income due from last year through revenue online. I had a quick question on the tax due, if you are oweing approx 8K, can you offset this with a contribution to a pension scheme? as in you put 2K into a pension pot and this reduced your bill of 8K. I remember coming across this in the past and was hoping for clarification, thanks.
 
yes is my understanding.

Rent is treated same as income/dividends so AVC's reduce your tax IT liability (but not PRSI/USC)..

there is no separation of "pots".
 
corkfella said:
Hi, I'm due to speak to an accountant next week on this matter but I declared my rental income due from last year through revenue online. I had a quick question on the tax due, if you are oweing approx 8K, can you offset this with a contribution to a pension scheme? as in you put 2K into a pension pot and this reduced your bill of 8K. I remember coming across this in the past and was hoping for clarification, thanks.
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No you can not offset unfortunately
 
thanks all, looks like I might be another landlord leaving the market soon, the tax bills on the gross income are crippling:oops:
 
corkfella said:
thanks all, looks like I might be another landlord leaving the market soon, the tax bills on the gross income are crippling:oops:
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I'd imagine it's rare that a landlord has zero expenses or capital allowances for renting their property which would would mena they would be taxed on the Gross amount of rental income received.
 
T McGibney said:
Not correct. Rental income and dividends cannot be directly sheltered for tax purposes by a pension payment. If the OP has eligible income eg from employment or self-employment, this can be sheltered.
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In a IT assessment, is the sum of (earned/unearned income +dividends) *40% your IT liability ?
 
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