Non-domiciled Landlord Tax Question

dublinia01

Hello,
I have a tax question, hopefully I can make this sound as simple as possible. I inherited a share of my father's house in Dublin in February 2019 between myself and two siblings. My sweetheart of a brother was handling probate however he died tragically from an accident in February this year so his wife and children will now receive share. Brother had just finished renovating house and secured tenants one month before he passed, and then COVID-19 hit. Tenants have been living in house since January. Our family is very distraught and now handling two probates so I don't want to burden them with my tax questions. I have been living in California for past 20 years. We have been able to transfer my Dad's probate to my other sibling who lives in Ireland, but I'm very confused about any tax return I need to file. We all fall below the 333,000 tax threshold each so I'm just enquiring about my share of rental income taxes to be filed annually. The house is currently 3,000 EURO monthly so I'd be responsible for 12,000 EURO annually, less any taxable deductions. I read that a family member could handle my tax return instead of a tenant being responsible to file their own taxes. What happens when only one-third of the landlords are not living in Ireland? I have a PRSI number and an Irish bank account. Do you recommend I make an appointment to set up an online meeting with an Irish accountant? I already pay high income tax rates as an employee in California so I'm not what taxes I would need to file in Ireland. Sorry, I know I've posted a ton of questions. I would greatly appreciate any advice, thanks for taking the time to read my post. Elaine.

davindub

dublinia01 wrote: »

Hello,
I have a tax question, hopefully I can make this sound as simple as possible. I inherited a share of my father's house in Dublin in February 2019 between myself and two siblings. My sweetheart of a brother was handling probate however he died tragically from an accident in February this year so his wife and children will now receive share. Brother had just finished renovating house and secured tenants one month before he passed, and then COVID-19 hit. Tenants have been living in house since January. Our family is very distraught and now handling two probates so I don't want to burden them with my tax questions. I have been living in California for past 20 years. We have been able to transfer my Dad's probate to my other sibling who lives in Ireland, but I'm very confused about any tax return I need to file. We all fall below the 333,000 tax threshold each so I'm just enquiring about my share of rental income taxes to be filed annually. The house is currently 3,000 EURO monthly so I'd be responsible for 12,000 EURO annually, less any taxable deductions. I read that a family member could handle my tax return instead of a tenant being responsible to file their own taxes. What happens when only one-third of the landlords are not living in Ireland? I have a PRSI number and an Irish bank account. Do you recommend I make an appointment to set up an online meeting with an Irish accountant? I already pay high income tax rates as an employee in California so I'm not what taxes I would need to file in Ireland. Sorry, I know I've posted a ton of questions. I would greatly appreciate any advice, thanks for taking the time to read my post. Elaine.

Yes ask an accountant.

Internet tax or legal advice is not to relied on but the gist of it is:

1. Nominate 1 person as landlord who will also act as agent (or use agency).

2. They will need to file a tax return for you.

3.Where there are multiple beneficiaries of rental income, partnership accounts are often used to simplify the accounting. But still each landlord declares the income on their tax returns individually.

4. You will be taxed in Ireland and presuming you are tax resident in the US, taxed in the US, but can use the double tax treaty to claim a deduction in your US taxes.

5. A CAT return may have to be filed on your inheritance.

6. Check out the RTB rules for being a landlord, most of them are just common sense things but there are terms in relation to security of tenure.

7. You can probably expect fluctuations in the level of income you recieve due to repairs etc.

dublinia01

Thanks so much for your response, it gives me some things to work on. I appreciate it!