Hi,
I would like to get some advice on paying taxes on a rental property.
The Situation: I was a normal PAYE worker who emigrated from Ireland in 2010, and am currently renting out my property to tenants. It is the only property I own, and was purchased as a family home for me my wife and son.
Mortgage repayments are now 600 (down from 690 in 2010) per month. I get rent of 600, less 50 per month to the management agency, so 550 coming into the account. My Bank is PTSB , and both mortgage, current account etc is with them.
I registered with the Tenancy Board in 2010, but since I had now address abroad when I registered, I put my parents home address as the address with Tenancy Board. So I think as far as they are concerned I am a resident. However, I am permanently living abroad and Revenue know this.
Advice needed.
I did not pay any income tax on the rental of the property since 2010. I was not aware I had to until this year, and I have been trying to get it sorted, but due to a combination of procrastination on my part, not having any available funds and lack of knowledge of my obligations, I have not addressed it yet. So I realize I am in trouble, but want to get this sorted, and dealt with properly. I am registered with ROS and want to make a submission & payment online.
I realize that I owe tax at 20% of the income of the rental. Which for 2010, 2011 would be a total of 600pm*24 = ,14,400 @ 20 = 2,880 Euro. Add to this the fact that I missed the Oct 31st self file deadline both years, which means I need to add an extra 10% of this amount for each year, so add on another 576 or so euro.
I believe I can deduct expenses such as maintenance, repairs, mgt fees and the mortgage interest on this. These are not big expenses, so lets say the remainder is about 2,500 due.
The problem is I simply don't have that available, but I am doing my best to save this up, and hope to have at least half of it by March this year.
I have a number of questions I’ll try to keep the short and summarized. Any help is appreciated. Bear in mind, that I know I owe revenue money, I know I have to pay a penalty also for not getting this addressed sooner. But I am trying to get my affairs in order , and want to get some advice on how best to do so, while availing of the same deductions as other people.
Questions:
1. Is my calcuation above accurate, or am I missing something?
2. On ROS I am given the option of submitting Form 11 or Form 46G, - does anyone know which one to submit specifically for rental property?
3. How can I find out the amount of mortgage interest I paid in 2010 and 2011? Can the bank tell me the totals for each year, or do I have to work it out? It was a tracker mortgage so floated about 4.3 to 4.5 at various times.
4. Can the amount owed to revenue be paid in installments? I am set up with ROS online, and want to pay online, but if I submit the tax documents, I won't be able to pay any monies owed.
Thanks,
Mr Brown
I would like to get some advice on paying taxes on a rental property.
The Situation: I was a normal PAYE worker who emigrated from Ireland in 2010, and am currently renting out my property to tenants. It is the only property I own, and was purchased as a family home for me my wife and son.
Mortgage repayments are now 600 (down from 690 in 2010) per month. I get rent of 600, less 50 per month to the management agency, so 550 coming into the account. My Bank is PTSB , and both mortgage, current account etc is with them.
I registered with the Tenancy Board in 2010, but since I had now address abroad when I registered, I put my parents home address as the address with Tenancy Board. So I think as far as they are concerned I am a resident. However, I am permanently living abroad and Revenue know this.
Advice needed.
I did not pay any income tax on the rental of the property since 2010. I was not aware I had to until this year, and I have been trying to get it sorted, but due to a combination of procrastination on my part, not having any available funds and lack of knowledge of my obligations, I have not addressed it yet. So I realize I am in trouble, but want to get this sorted, and dealt with properly. I am registered with ROS and want to make a submission & payment online.
I realize that I owe tax at 20% of the income of the rental. Which for 2010, 2011 would be a total of 600pm*24 = ,14,400 @ 20 = 2,880 Euro. Add to this the fact that I missed the Oct 31st self file deadline both years, which means I need to add an extra 10% of this amount for each year, so add on another 576 or so euro.
I believe I can deduct expenses such as maintenance, repairs, mgt fees and the mortgage interest on this. These are not big expenses, so lets say the remainder is about 2,500 due.
The problem is I simply don't have that available, but I am doing my best to save this up, and hope to have at least half of it by March this year.
I have a number of questions I’ll try to keep the short and summarized. Any help is appreciated. Bear in mind, that I know I owe revenue money, I know I have to pay a penalty also for not getting this addressed sooner. But I am trying to get my affairs in order , and want to get some advice on how best to do so, while availing of the same deductions as other people.
Questions:
1. Is my calcuation above accurate, or am I missing something?
2. On ROS I am given the option of submitting Form 11 or Form 46G, - does anyone know which one to submit specifically for rental property?
3. How can I find out the amount of mortgage interest I paid in 2010 and 2011? Can the bank tell me the totals for each year, or do I have to work it out? It was a tracker mortgage so floated about 4.3 to 4.5 at various times.
4. Can the amount owed to revenue be paid in installments? I am set up with ROS online, and want to pay online, but if I submit the tax documents, I won't be able to pay any monies owed.
Thanks,
Mr Brown
