Using spouse's tax band for rental income

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pat 2800

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I have a rental income from a property that's in both our names. I will be taxed at 42% as I personally exceed the standard cut-off point of 41,000. My wife does'nt work but is it possible to use my wife's tax band ( up to 23,000 at 20% ) against half of the rental income . Could this be treated at her source of income.Would there be a problem with this ?
All comments welcome.
 
There shouldn't be any problem with that, as long as the property is in her name, then a share of the income is hers too.
 
You can avail of the full 'married two incomes €64,000 income tax band' at 20% if you transfer the title to the rental property into her sole name.

If there is a mortgage on the property, you will need to first contact your lender to see if they have any objection to a 'joint mortgage, sole title' situation. If they agree, you can then contact your solicitor to transfer the property to your wife's sole name.

The rental income would then become her only source of income and would be taxed, after deductions, at 20%.

There are also no tax complications as asset transfers between spouses are exempt from tax.

Make sure you get a fee estimate from your solicitor before proceeding - we did this last year and paid €450.00.






 
Hi,
This sounds good. We currently are getting Home Carers Tax Credits for my wife who is not working and we have rental income. If we change to have my wife earning the rental income how does this affect the home carers credit? how does it work? any details?
 
delgirl said:
You can avail of the full 'married two incomes €64,000 income tax band' at 20% if you transfer the title to the rental property into her sole name.
Click to expand...

That assumes a net rental income of €23,000+ otherwise the increase in the band will be up to the amount of the net rental income.
 
I have PAYE Income and Rental Income. Property is in my name.Wife has nil income. Accountant is quite certain that if rent is paid into wife's sole bank account,we can avail of the married with 2 incomes tax band.No need to transfer title.I am not totally convinced and fear a problem in years to come.Any thoughts?
 
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