Rental Income Tax

Pugmister

Registered User
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Hi All,

My mum has recently inherited a commercial property and probate has just been granted. The solicitor looking after the estate is currently in the middle of negotiating a new lease with the existing tenant.

During the period of probate the solicitor has been collecting all rents in an escrow account.

I'm am currently looking into her tax liability.

The rent on the property is 2500 monthly for which she will receive 1250 and her sister gets the other 1250.

This is her sole income other than the state pension.

Am I correct in thinking her liability for a full year would be 15,000 less any insurance premium paid @20%. There has been no expenses to date and we don't foresee any in the immediate future.
 
Her taxable income would be 15,000 plus the value of the state pension. That brings it to (roughly) 27,500. This will be taxed at 20%. If she is 66+ there will be no prsi. USC will be payable on the 15,000.
 
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