Politician in speaking out of both sides of his mouth shocker.The Journal are reporting that Leo Varadkar stated at a party meeting in Wicklow yesterday evening that "he would like to impose a property tax on vacant properties in high demand areas, while discussing the “punitive costs” landlords experience, stating they should be treated like any other business and permitted to offset any loss".
I don't think there's a shortage of cars in the country whereas there is a dire need for housing.We will wait and see if the tax treatment does indeed change. I would have a problem with a vacant dwelling levy. it is bad enough that you are liable for property tax.
We need to treat residential landlords as a business rather than the social agenda. it is a business pure and simple and should be treated as any other business. What's next because I choose to use public transport and leave my car in my driveway should I be charged a tax for not using my car although I already pay car tax.
It may be useful to summarize how rental income is not treated the same as any other business.
I don't think there's a shortage of cars in the country whereas there is a dire need for housing.
I know of a house near me in an area of Dublin close to town.
...
I just think they are wealthy enough to not be bothered with tenants and the issues that come with being a landlord. They're also tight enough to not want an agency to manage it for them.
They should be taxed into making a decision one way or another
Land and buildings in a business perspective are treated differently. There is no depreciation charge for land there is however a deprecation charge for buildings. Properties purchased for business are normally depreciated over a 25 yr life span.
Not of almost all buildings it ain'tDepreciation is a deductible expense in arriving at taxable income.
It is a popular notion that rental income is not treated the same as any other business, but it is not entirely true.
I am interested in your understanding of what elements of the buildings are not allowed be depreciated (assuming the business owns the property and is not leasing same) and are therefore not deductible from income to arrive at taxable income.
It wasn't a generalisation. It was a specific example of a house being left empty in a sought after area of Dublin for 3+ years and for no good reason. And I'm sure there's many many more like that around Dublin and the other cities in Ireland.No tax policy should ever be based on such sweeping and ill-informed generalisations.
It wasn't a generalisation. It was a specific example of a house being left empty in a sought after area of Dublin for 3+ years and for no good reason.
I just think they are wealthy enough to not be bothered with tenants and the issues that come with being a landlord. They're also tight enough to not want an agency to manage it for them.
They should be taxed into making a decision one way or another
It wasn't a generalisation. It was a specific example of a house being left empty in a sought after area of Dublin for 3+ years and for no good reason. And I'm sure there's many many more like that around Dublin and the other cities in Ireland.
The lack of a real stick in current tax policy allows for that.
~200,000 empty properties across the state according to official figures. For many, the onerous responsibilities and risks are good enough reason not to get into the letting game.
(shakes head)
I am aware of the Capital nature of tax and the various incentives offered over recent times. The question I asked is about the depreciation charge and its affect on taxable income (Rental income) not the tax on disposal etc.
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