Will rental income affect mother's old age pension?

[sadie]

My elderly mother (75) has an investment property that she has never rented out. She could rent this out at approx 800euro a month, but is afraid this would affect her old age pension and that she would need to start doing tax returns each year to declare the income?

 

[ClubMan]

If her pension is a contributory pension and thus based on PRSI payments then such additional income should not have any impact. If it is a non contributory pension and thus means tested then such additional income could well impact matters. Note that even her pension income is assessable for income tax so while she may not need to file a return each year she is within the remit of the tax system already. However if she has rental income then she will definitely have to file returns since that income is self assessed.

 

[gipimann]

If the lady is on a non-contributory pension, the additional property is assessable as capital, although the rental income from that property is not assessable.

See here for DSFA information.

 

[Joe1234]

However if she has rental income then she will definitely have to file returns since that income is self assessed.

While she will have to file a return, she should not have a tax liability if her total income is under 19K if she is single/widowed, or if married, total income from husband and wife under 38k.