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Tax is killing me- Landlord

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    #32
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    MarkAnthony wrote: »
    MABS etc. Did the OP indicate he was in mortgage distress though? Genuine question I probably missed it.

    Not exactly I suppose, but he's trapped by a property in negative equity so maybe they could give some guidance on talking to the bank and restructuring the loan.


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    #33
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    Oh I hate to see people with a job and assets in financial stress. Hopefully we can help with some reassurances.

    I've bought a property with asbestos roof before. I paid asbestos contractor to remove roof, and the place was perfect afterwards. Don't be worried about that at all if you want to sell. It might only be worth the site, but that's surely still better than a kick in the face. especially if you can use it to pay down the mortgage in longford and use the rent there to part-subsidise you in Dublin.

    Renting out a place with asbestos roof I'd be slower to do... from an ethical point of view. You could try an Air BnB type setup to see if there was an appetite for it as a holiday cottage, but you must declare this of course, and pay whatever marginal rate of tax you're at... less tax deductible expenses (like an accountant). I'd replace the roof first though, which may be beyond your means, which puts you back to selling it.

    And on not wanting to pay tax... in order to dig yourself out of any financial hole, you need steady, increasing, income. And where you have more income, you have tax. You have to factor it in, and do your calculations accordingly.

    If you wanted to post more details, people could give more specific advice.

    Are you PAYE, if so, what band?

    What is left over after paying your rent and other living expenses in dublin?

    Is there any other regular income you can think of to chop temporarily... car, sky tv, expensive phone package?

    Mortgage repayments and capital left to pay in longford. Interest rate?

    Can you claim more tax allowances. Engineers have some sort of nominal tool tax allowance. Anyone who has a uniform for work gets something small as well.

    Have you a base site value for the mayo cottage?


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    #34
    murphaph
    Registered Users Posts: 19,022 ✭✭✭✭murphaph


    I don't like seeing wasters get an easy ride either op but your first priority should be getting your tax affairs in order. Intentionally or not you are engaged in tax evasion by availing of the rent a room scheme. Are you even declaring the income on a Form 12 each year?


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    #35
    TeaBagMania
    Registered Users Posts: 1,192 ✭✭✭TeaBagMania


    As for the old cottage in the west, maybe finding a tenant with the appropriate qualifications that could repair\restore the cottage in exchange for say one or two years of free rent?

    Uninhabited homes degrade quickly


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    #36
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,384 CMod ✭✭✭✭Pawwed Rig


    thebeerbaron wrote: »
    Hi OP, FYI there IS a limit on the amount you have to earn to pay income tax on rental income. I believe it is around €4000 or €3800 which can include expenses. I talked to an accountant at xmas about my rental income for 2015 and he informed me that due to my income being so low I did not need to file a tax return.

    For anyone wondering why it was so low the lease was only April to Dec

    Your accountant was wrong. You have to file either a Form 11 or 12 (essentially the same thing).
    OP would also have to disclose that he is availing of the rent a room scheme too on the return.


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    #37
    thebeerbaron
    Registered Users Posts: 182 ✭✭thebeerbaron


    Pawwed Rig wrote: »
    Your accountant was wrong. You have to file either a Form 11 or 12 (essentially the same thing).
    OP would also have to disclose that he is availing of the rent a room scheme too on the return.

    Perhaps I have to declare it but that the amount I earned was too low to pay tax on


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    #38
    Baby01032012
    Registered Users Posts: 1,622 ✭✭✭Baby01032012


    thebeerbaron wrote: »
    Perhaps I have to declare it but that the amount I earned was too low to pay tax on

    The only way I can see no tax being due if you were renting out rooms in your own house and claiming rent a room relief where total payments were less than the €12k limit or if where your expenses were greater than the income and you are in a net loss situation.Both would require you to declare the figures on your return. Even if a loss you would want to carry that loss forward to the following year for use against future taxable profits, I'd presume


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    #39
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,384 CMod ✭✭✭✭Pawwed Rig


    If it was your sole income then you could earn €8,250 or if married and property in joint names then €16,500 without paying any tax as you would have the single married credit to offset.
    It assumes that you have zero other income though and as stated would still need to be returned.

    The OP said that they have other income so not relevant in this case


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