Using Undeclared Rental Losses

[Thomas1]

Hi

I have owned a share in a small rural commercial investment property (CIP) for over 10 years. I am a PAYE earner and my share of the current rental income from the CIP is c. €720 pa. It was vacant for much of the period and, after interest costs, there has been an annual loss since purchase - total accrued losses now c. €10k.

I have never completed a tax return but intend to complete a F12 for 2016 given it will be a 'breakeven' year. I intend to speak to a professional but to get my thoughts in order, my questions are:

1 - am I potentially in trouble for not submitting a return to date despite the losses?

2 - can I use the losses from the undeclared years to offset any future profits - albeit low hundreds at best?

Thanks
Tom

 

[jim]

Hi Tom,

I don't think you need to declare rental income if you don't in fact receive rental income - I could be wrong though.

 

[Thomas1]

Thanks Jim.

There has been minimal rental income of €720 pa for several years and €0 for several years prior to this. This 'income' has never been a profit. Is this what you mean?

 

[jim]

I think if you have rental income you need to make a return and if its rental profit then you pay tax on that. if you had rental income for several years then you should have been doing a Return for that.