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Renting shared ownership

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  • 26-05-2018 10:04pm
    #1
    ted1
    Registered Users Posts: 23,524 ✭✭✭✭


    Anybody else here do it?

    Are you paying tax?


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    ted1 wrote: »
    Anybody else here do it?

    Are you paying tax?

    Several local authorities allow this. Formerly it is expressly forbidden- however, this preclusion has officially been dropped (by some local authorities).

    Any rent from a Shared Ownership unit- is the same as any rent from any residential letting- and is wholly taxable (less allowable deductions), at a persons marginal rate of tax. Even if no tax is due- a person is legally required to complete an annual tax return and declare it- and any tenancy must be registered with the RTB- and the Residential Tenancies Act fully complied with.

    Edit: If you let a shared ownership unit- you are ineligible for HAP/RAS or any other accommodation subsidy elsewhere- and the gross rental income is considered as means when considering *any* means based social welfare entitlements.


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    #3
    ted1
    Registered Users Posts: 23,524 ✭✭✭✭ted1


    I’m fully aware of the rules as I’ve been renting one out for years. And the council know it.
    I’ve moved to full ownership now.
    But I thought I’d see if many other people are doing it.

    Because I’ve not had to pay tax since I had it. In fact Revenue reluctantly changed a 40,000 bill into a 500 cheque.

    I discovered that the rent you pay to the council is a deductible expense. Much to the dismay of the revenue auditor and her manager.

    So if you pay 1,000 a month to the council and they own 50% straight away you have a legitimate 500 deduction from your tax bill. Then you can also deduct the usual north interest , depreciation fittings etc


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