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Reclaim rent money???

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  • 15-07-2010 10:53am
    #1
    RobBaxter
    Registered Users Posts: 265 ✭✭


    Hi guys,I was wondering if you rent a house can you claim some tax back from the government or have a bigger tax free allowence or anything?I pay my landlord cash in hand (he is a good friend). Doesn't go through the books or anything but I was wondering if it was all "official" - for want of a better word - would it be of any monetary benefit to me?It would probably be worth mentioning that I have a property and have to pay tax on the rent that I recieve from my tennants. Can I write some of it off on the rent that I am paying and thus pay less tax???Cheers,Bobby


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    #2
    RobBaxter
    Registered Users Posts: 265 ✭✭RobBaxter


    Hi guys,

    I was wondering if you rent a house can you claim some tax back from the government or have a bigger tax free allowence or anything?

    I pay my landlord cash in hand (he is a good friend). Doesn't go through the books or anything but I was wondering if it was all "official" - for want of a better word - would it be of any monetary benefit to me?

    It would probably be worth mentioning that I have a property and have to pay tax on the rent that I recieve from my tennants. Can I write some of it off on the rent that I am paying and thus pay less tax???

    Cheers,
    Bobby


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    #3
    AARRRRGH
    Closed Accounts Posts: 566 ✭✭✭AARRRRGH


    Yes you can claim back some tax.
    see here
    http://www.citizensinformation.ie/categories/housing/renting-a-home/tax_relief_for_tenants/

    But i am reliably informed that this tax relief for rent will be removed in the next budget as rents have fallen.

    This is how they plan to raise money. It will actually raise more money than a property tax.

    There really is no need for tax relief on mortgage interest, or on rent paid.


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    #4
    astrofool
    Registered Users Posts: 16,638 ✭✭✭✭astrofool


    The tax relief for rent is a relative pittance. The tax man probably gets more out of it through making landlords compliant, then it gives back to the renter.

    Dropping it would be monumentally stupid, and I'd love to know who your "reliable informant" is.


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    #5
    Cool Mo D
    Registered Users Posts: 1,419 ✭✭✭Cool Mo D


    astrofool wrote: »
    The tax relief for rent is a relative pittance. The tax man probably gets more out of it through making landlords compliant, then it gives back to the renter.

    Dropping it would be monumentally stupid, and I'd love to know who your "reliable informant" is.

    Yes, exactly. Rental tax relief can only be got if your landlord is registered, and paying tax. So, giving the renter an incentive to get the landlord registered is probably fairly revenue neutral, or a bit positive for the taxman.


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    #6
    wench
    Registered Users Posts: 1,644 ✭✭✭wench


    Cool Mo D wrote: »
    Yes, exactly. Rental tax relief can only be got if your landlord is registered, and paying tax. So, giving the renter an incentive to get the landlord registered is probably fairly revenue neutral, or a bit positive for the taxman.
    Your landlord doesn't have to be compliant for you to claim rent relief. Revenue are only too happy to use this as a source of info on unregistered landlords.


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    #7
    AARRRRGH
    Closed Accounts Posts: 566 ✭✭✭AARRRRGH


    Believe it or not most landlords are registered.
    Its the fact that they have to be registered to claim expenses and part of mortgage interest back, that makes them register with the prtb.

    So not a lot of money is made from renters shopping their landlords.

    Revenue have other ways of tracking down these non compliant landlords. And they already know who most of them are. Wait til the crackdown, with interest and penalties starts and those non compliant will realize how stupid they were.

    Imagine 4 working people sharing in a 3 bed house. Thats €1600 that revenue gives out. A pittance according to some people but it sure adds up. There is absolutely no point in giving this money back.

    What are people going to do if they dont get it? Live on the street?

    No they arent. Any sensible person is now paying less rent than they were a few years ago. They wont miss this money.

    People who dont pay tax, wouldnt get it anyway.

    It does not have to be calculated nor enforced. They just stop the credits.

    The do the same with mortgage interest relief. Bobs your uncle.

    Job done, coffers increased.

    Now compare this to the mechanics of applying, collecting and enforcing a property tax.

    A feasibility study on this is just about done. We''l all be hearing about it soon.


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