Want to sell investment property - I have paid no taxes in 11 years
- Thread starter Redwood1964
- Start date
Pay no cgt on sale of home (assuming pos equity).
Pay taxes owed from renting apartment.
Move into apartment.
J
Jon Snow
Guest
Hmmmmmmmm...
No detail on the site about who the proprietor of the firm is, where their office (if any) is, or what professional qualifications (if any) they have - which usually means none, because any qualified accountant or tax consultant will advertise their hard earned quals.
Being a "Registered Tax Agent" with Revenue literally means nothing; anyone who wants can get a TAIN.
I'm sure they probably compete on price, and may provide a great and simple service for run of the mill stuff, but I doubt negotiating substantial back duty settlements with Revenue is the guy's forté...
Redwood poster Joe 90 is an accountant I believe and he's already told you how to start getting your affairs in order starting with the PRTB. Very importanta this as it means the mortgage interest will be allowable then. Though it's unclear from your posts if you have actually paid interest. The accountant you hire does not have to be in the same location as yourself (I live abroad and my accountant is in Ireland and we meet once a year as everything can be done via email once it's is up and running - don't forget this cost is tax deductable).
Can you do as Joe 90 says and give us figures for each of the last 11 years. There is no way around the NPPR. But with a good accountant there may be some lee-way with revenue particularly as you have been ill.
It seems you don't want to sell the property and this might be possible if the figures make sense. Though if you're as ill as you say, selling might be the best option.
Redwood1964
Registered User
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- 10
Thanks Bronte and all.
I have signed present tenants up to PRTB.
Made application for mortgage interest certificates from my mortgage provider. Should be here in a week.
Spent 2 hours in bank printing out bank statements. Only go back to December 2009. Need to pay €3 a sheet from head office for rest going back to 2004.
Requested statements of insurance paid each year.
Requested hospital admissions and discharges on headed paper going back 20 years.
Think I started renting property at €1,000/month. Went up in equal increments to present total of €1,450/month. Each tenancy lasted at least 2 years with exception of a one year duration.
I'd love to keep the apartment but how can I? It is getting harder for me to handle changeovers anyway. Would Revenue wait for me to see out the term of the mortgage?! I doubt it. I think I've to pay up front for these taxes but that may be wrong also. Anyway I'll have to come to some arrangement with them.
Yes, the CGT is going to be a whopper but please note that the €200,000 mortgage wasn't the whole story. I paid €254,000 for the apt in total. The€54,000 came out of a €70,000 inheritance. Spent rest of inheritance on furnishing and fittings.
I live in a house owned by my brother-in-law. He kindly 'donated' it to me to act as caretaker when things were particularly bad. It is rent free but I do not own it. Wish I did! I am very lucky to have it.
Joe 90 asked:
1. Did you claim tax relief at Source on mortgage interest?
No
2. Did you claim an exemption from Stamp Duty?
No
3. Income tax: you need to summarise your rental income per calendar year.
Just breaking even with mortgage until 3 years ago when I charged €1,300/month. Now €1,450 with mortgage repayment €1,050.
Get the mortgage statements and summarise the mortgage interest for each calendar year. 75% of the interest is allowable if the tenancy is registered with the PRTB. ( you can retrospectively register the tenancies)
Summarise all relevant expenses per calendar year.
Doing this.
4. Get a summary of your social welfare benefit.
Will do this.
5. The NPPR is due €7k.
One more thing, I was a few months in arrears about 5 years ago and mortgage provider rejigged the mortgage repayments. I can't remember what effect this had on my mortgage term but I'll find out this as well. This may be important but paying €1,050/month ever since.
The value of €400,000 that I have on property is not copper fastened either. It's more my judgement as to what it's worth but it's in a great location and is a special place. Other 2 bed apartments in area have sold recently for €350,000 but nothing special. This place is.
Going about trying to sort this out has been good. Thanks for your help.
I have signed present tenants up to PRTB.
Made application for mortgage interest certificates from my mortgage provider. Should be here in a week.
Spent 2 hours in bank printing out bank statements. Only go back to December 2009. Need to pay €3 a sheet from head office for rest going back to 2004.
Requested statements of insurance paid each year.
Requested hospital admissions and discharges on headed paper going back 20 years.
Think I started renting property at €1,000/month. Went up in equal increments to present total of €1,450/month. Each tenancy lasted at least 2 years with exception of a one year duration.
I'd love to keep the apartment but how can I? It is getting harder for me to handle changeovers anyway. Would Revenue wait for me to see out the term of the mortgage?! I doubt it. I think I've to pay up front for these taxes but that may be wrong also. Anyway I'll have to come to some arrangement with them.
Yes, the CGT is going to be a whopper but please note that the €200,000 mortgage wasn't the whole story. I paid €254,000 for the apt in total. The€54,000 came out of a €70,000 inheritance. Spent rest of inheritance on furnishing and fittings.
I live in a house owned by my brother-in-law. He kindly 'donated' it to me to act as caretaker when things were particularly bad. It is rent free but I do not own it. Wish I did! I am very lucky to have it.
Joe 90 asked:
1. Did you claim tax relief at Source on mortgage interest?
No
2. Did you claim an exemption from Stamp Duty?
No
3. Income tax: you need to summarise your rental income per calendar year.
Just breaking even with mortgage until 3 years ago when I charged €1,300/month. Now €1,450 with mortgage repayment €1,050.
Get the mortgage statements and summarise the mortgage interest for each calendar year. 75% of the interest is allowable if the tenancy is registered with the PRTB. ( you can retrospectively register the tenancies)
Summarise all relevant expenses per calendar year.
Doing this.
4. Get a summary of your social welfare benefit.
Will do this.
5. The NPPR is due €7k.
One more thing, I was a few months in arrears about 5 years ago and mortgage provider rejigged the mortgage repayments. I can't remember what effect this had on my mortgage term but I'll find out this as well. This may be important but paying €1,050/month ever since.
The value of €400,000 that I have on property is not copper fastened either. It's more my judgement as to what it's worth but it's in a great location and is a special place. Other 2 bed apartments in area have sold recently for €350,000 but nothing special. This place is.
Going about trying to sort this out has been good. Thanks for your help.
Revenue don't know about you yet so it's not a question of them finding you until you come to them. Best to have everything in order and you're going about this correctly. You also have to register your previous tenancies with the PRTB, and this can be done. I would advise you to pay for the bank statements. I sincerly advise you to hire an accountant, there is no way you'll manage this on your own, but getting all the paperwork is a necessary first step.
Don't forget all the deductables on rental income. Wear and tear, life insurance, house insurance, lawn cutting, repairs, advertising, lease costs etc.
Is the apartment in Dublin - as 400K sounds a lot for a two bed to me.
Don't forget all the deductables on rental income. Wear and tear, life insurance, house insurance, lawn cutting, repairs, advertising, lease costs etc.
Is the apartment in Dublin - as 400K sounds a lot for a two bed to me.
Redwood1964
Registered User
- Messages
- 10
Apt on a leafy old Georgian square with period features and high ceilings. Bright and airy throughout. See, I love it! Yes in South Dublin City. Character and location. Walk everywhere. Have I sold it?!
Redwood1964
Registered User
- Messages
- 10
Hi Bronte
I've done up a collage of the apt to convince you and the Revenue further!
How can I get it to you?
Cheers,
Redwood
I've done up a collage of the apt to convince you and the Revenue further!
How can I get it to you?
Cheers,
Redwood
Just reading this, I don't see any mention of LPT or its predecessor the Household charge which I believe hit serious numbers if unpaid.
Is it an issue for investment properties or did it only target home owners?
OP are you the owner of where you are living now because there maybe LPT, house charge issues there
OP: you need to be 1000% certain that your SW benefit was not means tested or did'nt change to be means tested during the 11 years.
Is it an issue for investment properties or did it only target home owners?
OP are you the owner of where you are living now because there maybe LPT, house charge issues there
OP: you need to be 1000% certain that your SW benefit was not means tested or did'nt change to be means tested during the 11 years.
Redwood1964
Registered User
- Messages
- 10
Hi ircoha
What does LPT stand for do you mind? Local Property Tax?
I don't own where I am living but brother-in-law does and very kindly doesn't charge me anything for the privilege.
Illness benefit not means tested. Based on stamps accrued during employment.
They are very jumpy if there is even a hint of you starting a job which is only fair.
How much per year is the USC do you know?
What does LPT stand for do you mind? Local Property Tax?
I don't own where I am living but brother-in-law does and very kindly doesn't charge me anything for the privilege.
Illness benefit not means tested. Based on stamps accrued during employment.
They are very jumpy if there is even a hint of you starting a job which is only fair.
How much per year is the USC do you know?
He does not live in the property and is therefore liable for both the LPT (local property tax - which is relatively new, about two years) and the household charge (Can't remember but that was around 100 Euro and it only lasted a year or so before being abolished) . Any fines on this are nothing like the ones associated with the NPPR (lasted quite a few years, maybe five)
What's a collage?
Yes my mistake
It's hard to keep up with all the charges especially as the years go by.
https://www.nppr.ie/default.aspx
The annual NPPR charge of €200 per property applies for all years 2009-2013
This bit is interesting:
A person who does not pay a NPPR charge by the payment date leaves themselves open to prosecution by the Local Authority to whom the payment is due. A late payment fee will also arise if payment is not made by the payment date - see above. Furthermore, both the NPPR charge and any accumulated late payment fee will be a charge against the property concerned and will continue to be such for twelve years after the charge or late payment fees concerned became due. Any NPPR charges or late payment fees due on a residential property will have to be discharged, in full, before a transfer or sale of the property can be completed.
The table below outlines the NPPR charge and the corresponding late payment fees for each year at monthly intervals.
Could the OP wait 12 years and get away with it I wonder.
Damien is the owner of the firm.
Office is in Glasnevin.
Can't answer exactly what quals he has but he has the normal "bunch of letters" after his name, and has been doing my returns since he was a manager in Cornmarket Financial Services in Dublin.
My business cards also do not list my quals on it but I suppose that's a personal choice, People could easily add in the BEng, MIEI or AIFireE if it made people felt better
Anyway, it was a simple recommendation, don't like him, don't use him, use someone else.
J
Jon Snow
Guest
Look at the website of any normal reputable accountancy or professional services firm - the name(s) of the principal/partners are always prominent, especially in the About Us part of their site; why? Because they trade on the professional expertise and reputation of those individuals.
The fact that you say he was previously a manager in Cornmarket probably confirms that he isn't a qualified accountant with a practice cert from one of the main accounting institutes.
I don't list all my letters after my name either, but if I was still in practice and had a website, I definitely would, there if nowhere else.
The guy may be very good at the basics, but I reiterate this is not the normal run of the mill tax return, the OP needs someone whose bread & butter is making settlements with Revenue .