Question about Revenue and property...

DoozerT6

I rented out my principle residence for a period of two years some time back - done above board, through an agency, registered with PRTB etc...now for an unrelated reason, Revenue are looking for copies of utility bills that includes the period the property was rented out, and I would not be the named person on the bill. Do I actually owe Revenue anything tax-wise for the period the property was rented out?? The agency never mentioned anything to me at the time and it never occurred to me to ask......Sorry for the noob question, but the Revenue site is so flippin comprehensive that I can't find an answer!

srsly78

You must declare all your income and pay the tax due on it. Agency just manages the property, not your personal tax affairs.

Moonbeam

DoozerT6 wrote: »

I rented out my principle residence for a period of two years some time back - done above board, through an agency, registered with PRTB etc...now for an unrelated reason, Revenue are looking for copies of utility bills that includes the period the property was rented out, and I would not be the named person on the bill. Do I actually owe Revenue anything tax-wise for the period the property was rented out?? The agency never mentioned anything to me at the time and it never occurred to me to ask......Sorry for the noob question, but the Revenue site is so flippin comprehensive that I can't find an answer!

If you have not already paid tax on the income then yes you should have and if not then you need to .

Mrs OBumble

Did you declare the income to Revenue?

If not, then get yourself a tax professional, aka an accountant NOW - you could be in serious shyte if you willfully did not declare it.

relax carry on

DoozerT6 wrote: »

I rented out my principle residence for a period of two years some time back - done above board, through an agency, registered with PRTB etc...now for an unrelated reason, Revenue are looking for copies of utility bills that includes the period the property was rented out, and I would not be the named person on the bill. Do I actualy owe Revenue anything tax-wise for the period the property was rented out?? The agency never mentioned anything to me at the time and it never occurred to me to ask......Sorry for the noob question, but the Revenue site is so flippin comprehensive that I can't find an answer!

How did you think renting out your property and tax was unrelated? The link below will assist you but time to talk to a competent tax advisor now.

http://www.revenue.ie/en/tax/it/leaflets/it70.html

DoozerT6

Thanks for that guys, I am seeking advice from a professional and will go from there. That'll learn me for knowing absolutely nothing about the taxation system!

Mods, this thread can be closed now, thanks.

johnnyskeleton

There are also issues of TRS and stamp duty clawbacks if you availed of TRS or got ftb stamp exemption. Wasn't there also a crazy second home tax the year before the household charge was brought in?

athtrasna

DoozerT6 wrote: »

I rented out my principle residence for a period of two years some time back - done above board, through an agency, registered with PRTB etc...now for an unrelated reason, Revenue are looking for copies of utility bills that includes the period the property was rented out, and I would not be the named person on the bill. Do I actually owe Revenue anything tax-wise for the period the property was rented out?? The agency never mentioned anything to me at the time and it never occurred to me to ask......Sorry for the noob question, but the Revenue site is so flippin comprehensive that I can't find an answer!

I'm not sure how you thought it was above board. Landlords are usually more aware of the tax issue than the PRTB to be honest. Rental income is precisely that, income and subject to tax after allowances/allowable deductions.

Sorry OP, sounds like this is going to be an expensive lesson for you to learn!

DoozerT6

athtrasna wrote: »

I'm not sure how you thought it was above board. Landlords are usually more aware of the tax issue than the PRTB to be honest. Rental income is precisely that, income and subject to tax after allowances/allowable deductions.

Sorry OP, sounds like this is going to be an expensive lesson for you to learn!

I guess it was 'above board' as far as I was concerned at the time I know it seems difficult for others to believe that I had no idea that this was a tax issue, (as the rent wasn't even an income for me, simply covering the mortgage/management fees on the property...especially as what I was getting in rent eventually wasn't even covering those costs - hello, property burst!!) but I was totally unaware of it. I'm a very 'by the book' sort of person so it is totally unlike me not to have all the t's crossed etc. Funnily enough not one person I know even casually mentioned to me about the tax ramifications. Even my own parents never mentioned it to me, and they're more 'by the book' than I am!

But as I said, mistake made in all innocence, and I will try to sort it out and take my medicine.

Stheno

DoozerT6 wrote: »

I guess it was 'above board' as far as I was concerned at the time I know it seems difficult for others to believe that I had no idea that this was a tax issue, (as the rent wasn't even an income for me, simply covering the mortgage/management fees on the property...especially as what I was getting in rent eventually wasn't even covering those costs - hello, property burst!!) but I was totally unaware of it. I'm a very 'by the book' sort of person so it is totally unlike me not to have all the t's crossed etc. Funnily enough not one person I know even casually mentioned to me about the tax ramifications. Even my own parents never mentioned it to me, and they're more 'by the book' than I am!

But as I said, mistake made in all innocence, and I will try to sort it out and take my medicine.

Income from renting is different from others in that not all costs can be defrayed.

You can't defray mortgage, only mortgage interest for example.

You need to speak to a tax specialist

Worst case scenario you could be liable for 41% of the rental income you earned.

srsly78

Worst case is 41% + penalties on top of that you mean.

Stheno

srsly78 wrote: »

Worst case is 41% + penalties on top of that you mean.

Forgot about the penalties!

OP is lucky it's before the change which made it liable for PRSI and USC!

Scofflaw

Closed at OP request.

moderately,
Scofflaw