Tax on Rental Profits

B

Brian_M

Registered User
Messages
16
Hi All,

I am due to pay self assesment tax on rental profits for the first time in 2013.
Previously the rental profits were quite small and Revenue were able to deal with them as part of my PAYE return.

I'm wondering how much I'm due to pay in preliminary tax to keep things right. I reckon the taxable profits will be about €5,000. Do I pay 41% income tax and 7% USC on this figure pending finalisation of things at the end of the year.

Any advice gratefully received

Brian_m
 
75% mortgage interest, usual expenses and 12.5% capital allowances then 41% income tax and 7% USC will give you a good ball park.

Now get ready for all the posters saying you don't have to pay any prelim tax in 2013. For your own sanity you should pay what you owe and not push it into next year.
 
Ho Joe90
Thanks for the reply. That's what I was thinking as well. If I didn't pay the preliminary tax in 2013 I'd have two lots to pay in 2014.
So basically for 2013 it's 48% on the taxable profits after taking account of all the deductions
 
I agree with Joe90 - the interest rate you will earn on your income tax if you pay it next year isn't worth thinking about. You will need to register for income tax if you aren't already registered.

I'd suggest you may also have 4% PRSI liability on the rent. The bizarre interaction of "unearned income" and PRSI I've never fully understood.
 
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