Rental income - what should be declared

[**Kildare2345**]

In 2005 I bought a house with my sister. I moved out in 2008 and my room was rented out and I declared all rental income.

In 2014 my family (husband and son) moved back into the property. My sister was living with her husband in this house.

My husband and I are paying the mortgage and all expenses related to the property. My sister is not benefiting in any way financially from this arrangement - I suppose the only benefit that she has had is that she has not had to worry about the mortage been paid.

My question is should my sister have to declare and pay tax on 50% of the value of the mortgage? As it is my husband in the house can I declare that it is our PPR?

Thank you

 

[Ravima]

Is house still owned by you and your sister?

are you/husband/son living in house with sister/husband?

 

[gar32]

If it's both your & your sisters family home then no tax needs to be paid. I am not expert but if you still feel like following up call the tax office. They usually can help or at least try too any way

 

[Joe_90]

If it's both your & your sisters family home then no tax needs to be paid. I am not expert but if you still feel like following up call the tax office. They usually can help or at least try too any way

Let's say for a minute that you are paying down the joint mortgage by €1,200 per month i.e. At the end of the mortgage term the mortgage will be paid off then your sister has 1/2 an asset that someone else has paid for so therefore 1/2 the monthly payment is rent for her.

If your agreement is that yourself and you husband can stay in the house rent free her half of the mortgage does not reduce and therefore if it's sold she gets a much lower share of the proceeds than you.

 

[Daenis]

You asked about the PPR - A married couple can only have one PPR - are both of you actually living in the house - it could be just the way the original post is worded but it sounds like your husband and son are living in the house and you are not. For example if you and your husband happen to own 2 houses and for whatever reason you are living in one and he in the other then only one of these can be your PPR.