renting jointly owned house

[post-it]

Hi all,
Apologies if this has been covered already - I have searched but could not find it.

My mothers will, which is curently going through probate, states that the family home is to be split equally between my siblings and myself.

We are considering renting the house out until the property market improves and we might get a decent sale price for it.

If we do go down the road of renting the property, how would we go about completing a tax return for the rental income? who would be responsible for paying the 200 euro property tax? would we have to form a company or would one person have to take complete responsibility?
Any help would be welcome.
Thanks

 

[JoeB]

Well... there's several implications..

You'd need a BER, which you'll need anyway for selling.

You'll need to register with the PTSB..

There might be tax issues like CGT.. I am totally unsure but it'd need to be checked.

I feel you must pay the 200 Euro tax anyway, as no-one is living in the house.. but this issue isn't really addressed in the FAQ, (i.e the issue of several siblings inheriting a house and not living in it, is the 200 due?, is each sibling liable for their proportion of the 200?, if one subling lives in the house but only owns 25% what happens? etc etc)

You also need to find tenants, draw up agreements, and do the whole landlord thing which is harder than it sounds.

The housing market may take a long time to recover...

The executor is the one who chooses what must be done, .. if one sibling wants their share now then the executor should really be trying to sell..


Nothing is easy in these situations, and accurate info is hard to find.

Cheers
Joe

 

[Bronte]

It would be better if one person were to manage the property (and should get a fee for doing so, this is no easy task) Everybody would need to be in complete agreement with this. The more people there are the less likely that this can go smoothly.

The person managing the property needs to calculate the profits and loss (or get an accountant) and each person can declare their gain or loss on their tax returns. The NPPR fee of 200 has to be pain once annually you are all responsible.

You have mentioned that you plan to hold the property until the market improves, you also need to consider what will happen if the market gets worse.