Can someone please let me know if I'm correct.
I have a house and want to rent it out for maximum one year. I want to rent it for €18,000 total for the year. I am abroad and am a non resident in Ireland. My tenants should deduct 20% from what they pay me. I will use a property management company to deal with this. Property Management will take 10% to deal with the property on my behalf.
Income: €18,000
Tax: €3,600
Management Fees: €1,800
Net Rental Income: €12,600.
I know this is a very basic calculation but am I missing anything major here? What can I do to reduce my tax bill?
As a non-resident I'm not liably for PRSI or USC, so it's a flat 20% charge on rental profit. LPT is not tax deductible. Are these figures correct?
I have a house and want to rent it out for maximum one year. I want to rent it for €18,000 total for the year. I am abroad and am a non resident in Ireland. My tenants should deduct 20% from what they pay me. I will use a property management company to deal with this. Property Management will take 10% to deal with the property on my behalf.
Income: €18,000
Tax: €3,600
Management Fees: €1,800
Net Rental Income: €12,600.
I know this is a very basic calculation but am I missing anything major here? What can I do to reduce my tax bill?
Rental Income: | | €18,000.00 |
| | |
Expenses: | | |
Repairs | | €500.00 |
Management | 10.00% | €1,800.00 |
PTRB | | €90.00 |
Accountancy | | €200.00 |
Miscellaneous | | €500.00 |
Depreciation on Furniture, Fixtures & Fittings | | €500.00 |
Total: | | €3,590.00 |
Taxable Profit: | | €14,410.00 |
20% income tax | 20.00% | €2,882.00 |
Profit: | | €11,528.00 |
LPT | | €495.00 |
Net Profit: | | €11,033.00 |
As a non-resident I'm not liably for PRSI or USC, so it's a flat 20% charge on rental profit. LPT is not tax deductible. Are these figures correct?
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