TRS: Residential property is the "Buy to let" and Rented is the "Residential".

HI, TRS was automatically applied to my first mortgage. This was a 1 bedroom apt. and then when i got married and had children i bought a family home in 2010. This home was listed as a buy to let as my apt was listed as residential. However. TRS was applied to my apt. even when rented. I am now worried how to correct. I spoke to my rental agent and they also had not yet registered the tenant with PRTB. How can i correct. I am currently now working.
Should i be entitled to transfer TRS on my family home. This was bought in 2010.
I am unsure how to fix this problem. I know i was stupid, but it was only when i filled out a recent form i realized my family home is a "Buy to Let".

Well you need to start dealing with these issues.

1. You are not entitled to TRS on a property that you are not living in.
2. You are not entitled to Mortgage Interest Relief when the tenancy is not registered with the PRTB.

How did you deal with the interest in your tax returns? You are allowed to back date registration but you need to do this.

Thanks Joe. Do you know would i of being able to transfer the TRS to my now residential home, which was originally a buy to let. I will get this all fixed, but i fear my ignorance may cost me.

You should be able to but need to deal with the PRTB and prior tax returns.

macg said:

Thanks Joe. Do you know would i of being able to transfer the TRS to my now residential home, which was originally a buy to let. I will get this all fixed, but i fear my ignorance may cost me.

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First thing to do is back date the tenancy registration with the PRTB.

Then you write a letter to revenue explaining that they need to take back the TRS from your home, since x date, and apply it to your home (not sure if you're entitled to it for your current home). Explain the error as you've done on here.

Have you done your rental income tax returns since you've been renting?

I'm a big confused by your rental agents role. When did the tenancy arise? Has it been rented since 2010 and is it the same tenant? Does your contract with the agent say that the agent does the registration with the PRTB?

Thanks Bronte

It is rented since 2011, and i did not file a return. I was unemployed and as the rent was not covering the interest when you add mgt fees etc on the mortgage, i thought i would be ok. It is making a small loss each month. I am not paying the capital at the moment.

In hindsight this may sound silly, but i am not an accountant and as i was so much in negative equity, i tried to block out and not worry about the house as long as i met my interest repayments. At the start of the lease the agent said they would register with the prtb, but i am not sure if this was ever done. I had being paying the second property charge since i got my family home. If i am in error i will repay the TRS over time, but i am worried about receiving fines. I will employ an accountant to fix, but i am still unemployed. If the agent did not pay the prtb, could i just register the tenant from todays date, cancel the prtb and start completing year end returns> sorry i am clueless.

Thanks

For the purpose of tax returns on property would any income be added onto personal income when making a return or is all income taxable. ie. rent is 1000 mortgage interest is 1000 of which 75% is taxable. is this 250 excess taxable regardless if the owner is unemployed or not? Thanks

macg said:

At the start of the lease the agent said they would register with the prtb, but i am not sure if this was ever done.

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That's very vague Mac? You really need to sort it out. As far as I know most agents do not do this. It's really simple for you to do this online, all you need is your PRSI number and the tenants. What do you mean by cancel the PRTB? You just log on, put in the beginning of the tenancy in 2011 and pay the 180€. Have you had a tenancy change?
Why do you have an agent rather than doing it yourself. How much does he cost?

What is your rental income, mgt fee, mortgage interest for 2011? I suspect you are running at a loss, and you'll face no sanction. I don't think there's a fine for claiming TRS incorrectly.

Thanks Bronte.

Your opinion is a relief, i am just trying to get hold of an account to sort it out.
I am happy to pay anything i owe, I just heard about scary penalties.
Re:the PRTB i will be happy to pay. The agent had originally advised they would do this. I have it on email. For the tax return i know you get 75% off once registered, i dont know if the same will apply if i backdate it.

Sincerily Thanks.

Yes you will be able to backdate the 75%. Any chance of some figures? Even vague ones?

Hi NP. Bronte

Rent is 650pm
Mortgage interest is approx 600pm. (Currently no capital being paid, as rearranged with Bank)
TRS is approx. 75pm

Mgt fee. is 750 P/Y
Agent fee is 650 P/Y
Expenses approx. 300 P/Y (not receipts for all)
I am not sure if there is a provision for ware and tear.
Negative equity about 90k

I have no other income apart for welfare. I am hoping to start up a business soon, and in this process, i was completing forms when i realised i never changed my family home from buy to let and the apartment from primary residence. To be honest, i had enough on my plate.

Thanks