Tax to pay?

M

Mammysboy

Registered User
Messages
35
Hi,

I am Irish and live in the US. Rented my private residence in Dublin in Jan 2009. I understand from reading other threads that I will have to pay tax for 2009 by Oct 31 2010 and possibly make a pre-payment for 2010, correct?

2009
====
Annual Rental Income = 13800

Mortgage Interest=2740
Management Fee=1450
Letting Costs=1725
Advertising Costs=75
PTRB Registration=75
Repairs & Maintenance=100
Cleaning=150
Insurance=150

Total Expenses=6260

Net Rental Income=13800-6260=7540

Now, as I am non resident what % tax rate should I pay on 7540? I have no other income in Ireland or any other property anywhere.

How do I calculate for ware and tare on the furniture etc? And finally how should I calculate the pre-payment for 2010...all expenses are about the same except for mortgage interest...annual income will be less.

Many thanks in advance for any responses. Finally, if someone could recommend a cheap on-line tax service to validate my return, that too would be very helpful.

Regards,
Mammysboy
 
Have your tenants not been witholding 20% of the rent to forward to Revenue? They should have been. Sounds like you need to talk to an accountant or Revenue about how to proceed for next year.
 
No. It's rented through a letting agent and neither they nor the tenant have been withholding tax.

Any recommendations for an accountant with whom I can work with over email?

Is it 20% of 7540 that I would need to pay for 2009?
 
If you started renting from Jan 09, you probably can include a start up/ capital allowances figure for furniture etc.. This amount is then written off over 8 years at 12.5% per year.

Do you have to pay the NPPR charge?

www.nppr.ie
 
Thank you, I forgot to include the NPPR charge as an expense.

Is it 20% or some other % that I will need to pay on the Net Rental Income?
 
As this is your only income in Ireland, can you claim the usual tax free allowance for income? ie tax free up to approx 7k..
 
You must be deemed resident for tax purposes to avail of personal credits.
Click to expand...
That would seem logical to me.

So can anyone give me an answer to one of my original questions, as a non-resident landlord with no other income in Ireland, on a net rental income of about 7000EURO what % tax will I pay?
 
Last edited:
Just to go back to the point about claiming tax credits/reliefs:

certain non-resident individuals are allowed to claim personal tax credits/reliefs under Section 1032 TCA 1997 - the tax credits (if due) are apportioned based on the Irish income as a portion of the total worldwide income.

e.g.
personal credit for the year is €1830
taxable Irish rental income is €5000
total worldwide income (incl Irish rents) is €15000
calculation: 5000/15000 x 1830 = €610
an apportioned personal credit of €610 is due.

If you check out the Revenue website and search for Sec 1032 TCA it will give you more details about who can claim this.

Perhaps you might get more replies on how to calculate the tax in the Taxation forum?
 
Mammysboy,
You will be subject to tax at 20% on your rental income. PRSI may also be due but if you can prove the Revenue that you are paying Social Insurance in another country they will waive this.
 
Joe_90 said:
Mammysboy,
You will be subject to tax at 20% on your rental income. PRSI may also be due but if you can prove the Revenue that you are paying Social Insurance in another country they will waive this.
Click to expand...

Is it 20% or 41% ?

Someone told me recently I would have to pay 41% on my rental income if I decided to rent.

confused now.
 
depends on what your total income from everything is
for a single person
€36,400 @ 20%, Balance @ 41%-- so if you have a paye employment with gross of 36400 or more , any additional income rent or otherwise is taxed at 41%
 
WindUp said:
depends on what your total income from everything is
for a single person
€36,400 @ 20%, Balance @ 41%-- so if you have a paye employment with gross of 36400 or more , any additional income rent or otherwise is taxed at 41%
Click to expand...

Well I earn approx £31000 and the OH earns approx €40,000.

So would we pay 20% or 41% on the rental income?
 
Resident as 'in the country'?

Yes we are about to move to a new house we bought, but were thinking of renting out the old one as its a bad time to sell.
 
keeping this simple --i assume your salary is euro and not pounds and that house is jointly owned - your total combined income is 71,000 -- the first 1800 (36800X2 less 71000) of your rental profit will be at 20% with the balance at 41% -- not sure if your employers pay any benefits such as VHI? but if they do; and you have not included it in your salary figures above then the amount taxed at the lower rate is reduced
 
My salary is in STG, I work in NI.

Any idea how this affects everything?

Also, we got married 3 yrs ago, but the 1st house I bought (which might be getting rented out) is in my name only, and always has been. The mortgage is only in my name.

The new house will have both names on the mortgage and deeds.
 
ah , then that pushes it all into the higher tax bracket as your salaries are higher ( you live and pay taxes in the republic i take it)
 
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