If your net rental income (rent rec'd less expenses) is over eur3,174 you will be obliged to register for self-assessment. Under self-assessment your tax return (& tax payment) for 2011 will be due in Oct 2012. However, under self-assessment you are expected to pay preliminary tax in Oct 2011. While the prelim tax will be nil for your 1st year this will be something to consider going forward.
The rental returns for Oct, Nov and Dec 2010 should be returned by Oct 31st. January onwards will be due in Oct 2012We started renting out our house last November - are we due for tax returns this October?
It's not a major job but I would suggest maybe get an accountant for the first year as he will make sure you get all entitlements and could save you money in the long run. I don't know how much they charge but can be claimed as an expense so will only cost you half in real terms.And do you suggest we get an accountant to look after the returns or try it ourselves?
Can i choose to pay based on 100% of the 2010 income even though it only relates to 4 months?
Leaky 1,
You say "However, under self-assessment you are expected to pay preliminary tax in Oct 2011."
When you say "expected", is it mandatory or not?
Also i gather you have a choice to pay prelim 2011 tax at 90% of 2011 income or 100% of 2010 income.
I started renting my house in Sept 2010 so have only 4 months of rental income in 2010.
I will pay the full 2010 liability by 31st Oct 2011.
However, regarding prelim tax for 2011 can i pay 100% of 2010 (ie. can i pay the actual 2010 liability for 2010 even though it only relates to 4 months).
eg. rent €1,000 per month. So 2010 income €4,000
However 2011 income would be €12,000. 90% of this would be €10,800.
Just to clarify, you are talking about tax, so you should be multiplying the above figures by your marginal rate of tax, either 20% or 41% plus PRSI and USC, so say 30% or 50%...
I thought it was currently €10,000 - or am I mixing it up with some other tax scheme?
Bear in mind that deductions for mortgage interest (75% allowable) and other overheads can also be made.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?