I’m currently looking at buying a commercial property with tenants in place and currently returning a 10% yield on it. Would I have to pay capital gains tax on the full rental income or would I be able to offset repairs, depreciation etc…. Against this income?
Tax on commercial rental property
- Thread starter denby11
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Not CGT, but income tax. Have a read of this basic guide from Revenue, and then ask more specific questions :
Irish rental income
This page gives a general idea on how Irish rental income is taxed
www.revenue.ie
Shockingly low in current environment, unless its a super prime location like Grafton St. Are you sure you've thought this through?
galway_blow_in
Registered User
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So what percentage yield would you expect from a commercial property?Not CGT, but income tax. Have a read of this basic guide from Revenue, and then ask more specific questions :
Irish rental income
This page gives a general idea on how Irish rental income is taxed
Shockingly low in current environment, unless its a super prime location like Grafton St. Are you sure you've thought this through?
My politicians answer: it depends on many factors. But I'm assuming a low investment level where someone doesn't know which tax they'll be paying, so required yield should be higher.
Capital Gains Tax is not income tax.
They are completely different taxes.
You really need to get professional advice if your misunderstanding is this basic.
Brendan Burgess
Founder
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Don't touch it. It is complicated enough to buy property through a company, and a terrible idea when you are not familiar with the basics of tax.
It will also be very difficult to sell on if it's owned by a company.
Brendan
Please tell me you've an accountant that will tell you how bad of an idea this is.