Rental Property Co-Owned with friend - not registered with PRTB

E

eirefinq

Registered User
Messages
66
I bought a property with a friend in 2005 and rented it out immediately. It has been rented since then. We didnt register with the PRTB. We have recently got new tenants and have a completed PRTB form. We want to get ourselves sorted from a tax point of view. Its a 35 year mortgage so most of the rental income can be written off against the interest payments on the mortgage. What view would the Revenue take if we make a voluntary disclosure (backdated to 2005 of course) now? Will they ask us to pay tax on the rental income because we were not registered with the PRTB or will they just be glad that we have registered and let us off? Thanks.
 
If you were not registered with the PRTB, you are not entitled to set off the mortgage interest against the rent received, so you could find yourself with a much larger tax bill that you are expecting.
 
eirefinq said:
will they just be glad that we have registered and let us off? Thanks.
Click to expand...

As Nutso has said, you can only offset the interest of the mortgage as an expense if you are registered with the PRTB. It costs €70
If the origional tenents were still there you could try to register them and pay the late fee.... €140.
However, you mentioned that there are now new tenents so it looks like you are stuck.
I don't think the revenue will "let anyone off".
From the last emergency budget the interest possible to offset is now 75%. It seems likely that this amount will reduce at the next budget.
Oh, and don't forget the rental property tax !!!
Sorry
 
You must log in or register to reply here.
Back
Top