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Renting out and Tax

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  • 25-04-2017 12:08pm
    #1
    arrianalexander
    Registered Users Posts: 978 ✭✭✭


    Looking for guidance and advice.

    , bought an apartment.

    The apt was jointly bought with my father. The mortgage is in both of our names. And has remained since. The money is debit out of an account in his name.

    The upkeep and repayments I have paid for. I deposited money into the account for the mortgage. furnishings etc all paid by me. It is a three bedroom apt , was occupied by me and other rooms were at times rented out to cover cost of mortgage.


    I had to move away from the area for personal and work reasons


    the apt has been rented out since .


    I know have to declare it to revenue that i am renting it out.

    What will the situation be because the property is in two names and the money is taken from my father's account.

    For what it's worth my father has another property that he rents out and is declared to revenue.


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    #2
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Who is getting the income? They pay the tax. No idea if the relief on the mortgage interest can be transfered, I'd suggest an accountant for atleast the first year.


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    #3
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    the rent is going into his account in his name but the account is solely for the apt, for paying mortgage and management fees , up keep etc.

    no other income goes into that account


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    #4
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    arrianalexander wrote: »
    the rent is going into his account in his name but the account is solely for the apt, for paying mortgage and management fees , up keep etc.

    no other income goes into that account

    That doesn't answer the question - who is getting the benefit of the income, they would be the one liable for the income tax.


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    #5
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    the money is lodged into the account

    the out goings are for mortgage, fees and up keep

    any excess is left in the account and is used for up keep when needed, there is very little profit ,

    no one is getting any income as such


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    #6
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    arrianalexander wrote: »
    the money is lodged into the account

    the out goings are for mortgage, fees and up keep

    any excess is left in the account and is used for up keep when needed, there is very little profit ,

    no one is getting any income as such

    Someone is getting the gross income (income before expenditure). If you're struggling with even this, you definately need an accountant.


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    #7
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    i am getting an accountant just wanted a bit of guidance before going into one

    thanks for your advice and help


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    #8
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    The simplest way is probably to split the income and both pay tax on your portion (less allowable deductions).


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    #9
    begbysback
    Closed Accounts Posts: 2,910 ✭✭✭begbysback


    Nobody seems to be taking the income, I'll have it!!


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    #10
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    begbysback wrote: »
    Nobody seems to be taking the income, I'll have it!!

    The income is used to pay the mortgage and up keep as mentioned already.


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    #11
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    Amelia Round Selfishness wrote: »
    The simplest way is probably to split the income and both pay tax on your portion (less allowable deductions).

    Thanks , will bear that in mind


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    #12
    CramCycle
    Moderators, Sports Moderators Posts: 24,909 Mod ✭✭✭✭CramCycle


    arrianalexander wrote: »
    The apt was jointly bought with my father. The mortgage is in both of our names. And has remained since. The money is debit out of an account in his name.
    Amelia Round Selfishness wrote: »
    The simplest way is probably to split the income and both pay tax on your portion (less allowable deductions).
    arrianalexander wrote: »
    The income is used to pay the mortgage and up keep as mentioned already.

    Mortgage in both your names then declare it half each as it benefits you both in this way.


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    #13
    Tayschren
    Closed Accounts Posts: 186 ✭✭Tayschren


    arrianalexander wrote: »
    The income is used to pay the mortgage and up keep as mentioned already.


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


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    #14
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    OP- just because the rent is going into an account- and the mortgage etc is going out- and there is nothing over- does not mean you don't owe any tax........ Get talking to that accountant pronto..........


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    #15
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    The_Conductor wrote: »
    OP- just because the rent is going into an account- and the mortgage etc is going out- and there is nothing over- does not mean you don't owe any tax........ Get talking to that accountant pronto..........

    I presume i will have to pay tax , sorry didn't mean to mislead in my replies that i thought i wouldn't have to pay tax.


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    #16
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,381 Mod ✭✭✭✭Gumbo


    arrianalexander wrote: »
    I presume i will have to pay tax , sorry didn't mean to mislead in my replies that i thought i wouldn't have to pay tax.

    Yes and not just in the little bit left. But in everything above and beyond 80% of the interest portion (minus qualifying expenses).

    Talk to an accountant asap as there may be tax benefits to splitting etc


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    #17
    arrianalexander
    Registered Users Posts: 978 ✭✭✭arrianalexander


    kceire wrote: »
    Yes and not just in the little bit left. But in everything above and beyond 80% of the interest portion (minus qualifying expenses).

    Talk to an accountant asap as there may be tax benefits to splitting etc

    Thanks for all replies

    Meeting accountant next week .


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    #18
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    arrianalexander wrote: »
    Thanks for all replies

    Meeting accountant next week .

    OP I didn't mean to come across as an asshat earlier - I use an accountant myself and it's well worth the investment (which is tax deductible).


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