TRS entitlement if move abroad?

[loukkcat]

I was just wondering does anyone know the status of TRS relief if a person:
a) leaves the country to work abroad for a year (or 2) and rents out their house
b) leaves the country to volunteer abroad for a year (or 2) so has no income other than a living allowance, and rents out their house
c) leaves the country to travel for a year and doesn't have any income at all, and rents out the house
d) leaves the country for 6 months to travel and doesn't rent out the house completely, but continues to rent out a room under rent a room scheme.

I am assuming from what I can understand on revenue.ie that under a) TRS would be stopped, but not sure about what happens in the other options.

I have heard of people going abroad and still getting TRS but I am assuming this wasn't above board? Or maybe it was?

It's not something I'm planning in the immediate future, but would like to know the situation before I start to dream, because without TRS rent would not cover my mortgage, especially if interest rates rise massively!

Oh, and would leaving mid way through the year for 12 months make things easier, as you are technically resident in Ireland for 6 months of both years?

 

[PaddyW]

I'm no expert, but I believe that in the first 3 examples you would lose TRS completely as it is no longer your PPR. You would keep it for d) though.

I'm open to correction, of course!

 

[fizzelina]

I was just wondering does anyone know the status of TRS relief if a person:
a) leaves the country to work abroad for a year (or 2) and rents out their house
b) leaves the country to volunteer abroad for a year (or 2) so has no income other than a living allowance, and rents out their house
c) leaves the country to travel for a year and doesn't have any income at all, and rents out the house
d) leaves the country for 6 months to travel and doesn't rent out the house completely, but continues to rent out a room under rent a room scheme.

I am assuming from what I can understand on revenue.ie that under a) TRS would be stopped, but not sure about what happens in the other options.

I have heard of people going abroad and still getting TRS but I am assuming this wasn't above board? Or maybe it was?

It's not something I'm planning in the immediate future, but would like to know the situation before I start to dream, because without TRS rent would not cover my mortgage, especially if interest rates rise massively!

Oh, and would leaving mid way through the year for 12 months make things easier, as you are technically resident in Ireland for 6 months of both years?

Paddy is right about a, b and c. For D it is a grey area, the house is not rented out but it is not your "main residence" for that 6 month period so it is debatable whether Revenue would allow the TRS.
People you heard going abroad and still getting TRS, they obviously didn't alert Revenue, it's up to the person to submit the form TRS4. It's not above board of them.
WRT not covering your mortgage, TRS only applies for 7 years and decreases each year and interest rates are likely to rise so you need to be considering this already and keeping a rainy day fund if possible, to help you meet your mortgage in the future. So maybe volunteering for a year or taking a year out to travel is not the wisest in that case that in future you would have used up any funds which you might need to help meet mortgage repayments.
If you leave mid way through the year you will get your tax credits for both years.

 

[loukkcat]

Thanks a million for that. A lot to think about.

but it is not your "main residence" for that 6 month period so it is debatable whether Revenue would allow the TRS.

Point is, for that 6 month period (or 12 month) there would be no main residence in any location, my stuff would all still be in the house, etc.

I'm only a year into my mortgage, so wouldn't think of anything until after my 2 years as a ftb are up, but just want to keep my options open....don't want to feel that being a homeowner means I can never travel again.

I accept your point about

keeping a rainy day fund if possible, to help you meet your mortgage in the future. So maybe volunteering for a year or taking a year out to travel is not the wisest in that case that in future you would have used up any funds which you might need to help meet mortgage repayments.

But to be honest, you only live once, so I'd rather take a few chances here and there, to get the most of out living than sit around worrying about a rainy day. They say you regret the things you don't do in life, more than the things you do!
Anyway, it's all ages away, just wanted to know what the situation would be! Thanks a million for all the info.

 

[Yeager]

Thanks a million for that. A lot to think about.

I accept your point about
But to be honest, you only live once, so I'd rather take a few chances here and there, to get the most of out living than sit around worrying about a rainy day.






Famous last words that have left alot of people in the mess they are in now.

 

[loukkcat]

Famous last words that have left alot of people in the mess they are in now.


True. But most of the people of my generation (I'm 30) messed up now because of the economic crisis are the ones who were sensible, saved up, got crazy mortgages for crazy overpriced properties, stretched themselves to the hilt, went with 5 year fixed rate mortgages cos it was the thing to do, only to be now stuck in negative equity and paying 5+% interest, with all their savings wiped, and no life to speak of.

The friends who lived - who travelled, partied, had fun, saved the bare minimum, are still renting, not in negative equity, have modest savings and a great life to talk about!

I'm somewhere in the middle!!

Anyway, that's getting off the topic I know, but just from watching my peer group, I don't always think that going down the perceived safe route is always the best one in the long term, both financially and in making the most out of life! Not saying that being reckless is either though!!!

 

[csirl]

There is a minimum number of days you need to be in the country during any tax year in order to be considered tax resident for that year. You need to be tax resident to claim TRS.

 

[Time]

183 days.