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Tax relief on rental property

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    #32
    Seamonster
    Registered Users Posts: 80 ✭✭Seamonster


    LooksLikeRain wrote: »
    Also, do you think I should pay tax on nothing? I'm not making money on renting, just covering rent

    Hi Seamonster,
    At the moment you are correct but be aware of what is proposed by some of the parties for the next budget. Under both Labours and Sinn Feins proposed policy landlords will be paying tax before they make any profit. This is because both parties wish to abolish mortgage interest relief for investment properties. So for a landlord the mortgage on the property no longer becomes a deductible expense.
    If a landlord is paid € 1000 for rent he\she must pay € 410 in tax regardless of whether this covers the mortgage.
    Not much chance of sinn fein getting into power but Labour may. So anyone who has a rental property should give labour their lowest vote.
    Labour think anyone with a second property is very rich must have a big stash of cash under the bed.
    In reality most landlords are paye workers who bought a property as a pension.

    Thanks for that, I am watching the parties closely but wasn't sure on their stance regarding landlords. The problem is rent is going down, mortgage going up. If they introduce a blanket fee regardless of wether the landlord is making money or not, that will really see reposessions go through the roof. I'm not a landlord who makes any money, but maybe for them a landlord is a landlord.


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    #33
    Seamonster
    Registered Users Posts: 80 ✭✭Seamonster


    dolphin city wrote: »
    I'd say you should sell your house, before you have us all killed on here. :D

    trust me, it's an option I am considering at the moment!


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    #34
    Seamonster
    Registered Users Posts: 80 ✭✭Seamonster


    OMD wrote: »
    somehow you seem to feel "ratting" on illegal activity is wrong.

    NO, not all, but letting someone carry out work you know is illegal, taking advantage of it and then ratting is wrong.


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    #35
    OMD
    Registered Users Posts: 2,458 ✭✭✭OMD


    Seamonster wrote: »
    NO, not all, but letting someone carry out work you know is illegal,

    But it is not illegal. The person is breaking no laws by doing the work.

    By the 31st of October that year the person then has to pay preliminary tax for that year. By 31st Oct the following year a tax return must be completed and the final tax bill must be paid. So if you get work done today and the tradesman decides not to pay tax he is not actually breaking the law until November 2012. If he wants to dodge his tax then he is an idiot. He is also sponging off me and tax payers like me.

    To be honest I would avoid this kind of tradesman anyway but if in that situation I would take enormous pleasure in "ratting" him out. Exactly the same for landlords dodging their tax. I would claim my tax relief and inform revenue and again I would get great pleasure from it.


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    #36
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    Seamonster wrote: »
    I'm sure if you were a house owner and needed to get a roof repair for example, and got a quote from a trades man for 200 euro cash, or 1000 including VAT, tax etc. you would defo go for the cheaper option.
    OMD wrote: »
    Grow up yourself.
    Seamonster wrote: »
    Your something else Jumpy. You obviously have telepathic powers beyond belief or your a narrow minded idiot.
    Seamonster wrote: »
    You seem to another tool

    ...

    A bit of a devious rat too, maybe from childhood issues that never went away,

    it makes you scum too, and a rat for accepting the job then screwing him over.
    dolphin city wrote: »
    I'd say you should sell your house, before you have us all killed on here. :D
    Can everyone tone it down and post constructively please?
    Seamonster wrote: »
    2 - You say I don't pay tax - how do you know that? Have you seen me driving around in my tax free car in your crystal ball?
    The following would appear to be suggestive of your plan of action.
    Seamonster wrote: »
    I'm sure if you were a house owner and needed to get a roof repair for example, and got a quote from a trades man for 200 euro cash, or 1000 including VAT, tax etc. you would defo go for the cheaper option.


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    #37
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    Landlords shouldn't forget that while they may come to a "cash" agreement with their tenant, to not claim relief, the tenant can then go and claim their tax relief after they have left and moved elsewhere. This is actually quite common. And they can also claim for back years too.

    You'd be foolish to think that you can simply get away with it, and the Revenue love nothing more than doing a full audit, going back 7 years. That would be a hefty bill, never mind other issues such as not registering with the PRTB, notifying your bank about your change of circumstances, etc.


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