When do I pay tax on net rent?

[Michael]

Hello, I purchased an Apartment in Jersey at end of February and have just received the first quarterly instalment of the Guaranteed 5% return (rent) for first two years. I will be assesed for Tax in Jersey on the Net Rent in 2005 (after interest offsets etc. ) in early 2006. I pay tax on the Balance of the Net Rent in Ireland.

Q: Do I wait until early 2006 to sort out my Irish Tax liability on the rent for 05 as I will only know the final 2005 Loan Interest paid by then and the Jersey tax or do I have to start paying the tax due here now? Thanks

 

[asdfg]

You need to get a full breakdown of the Net Rent. Does this include provision for furniture.

For Irish revenue my understanding is that you need Gross Revenue, Cost of furniture
You then deduct 1/8 of the cost of furniture per year
and mortgage interest
Other costs such as letting fees, insurance, accounts fees, maintenance fees etc
You can offset the tax paid in Jersey against tax paid in ireland assuming the double tax agreement allow this.

 

[BRICKTOP]

Your 2005 tax return is due at 31-10-2006. If the rental profits are low enough they may just reduce you tax credits, ring and ask or better off just to email. Watch out for double tax treatment.