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Bank demanding that I change mortgage

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13

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    #62
    Thargor
    Registered Users Posts: 17,935 ✭✭✭✭Thargor


    Geuze wrote: »
    Don't confuse TRS tax relief for owner-occupiers with landlords being able to deduct mortgage interest from gross rental income.

    Two different tax reliefs, both based on interest paid.

    So if you get a mortgage, buy a house, live in it and take your 14k tax free from the rent a room scheme, you can still write off all the mortgage interest against your income tax?


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    #63
    dubrov
    Registered Users Posts: 3,569 ✭✭✭dubrov


    Check your mortgage contract to see if they have a clause relating to renting out the property covering this.

    If it isn't there (and it isn't in many) there is nothing the back can do


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    #64
    Bandana boy
    Registered Users Posts: 4,327 ✭✭✭Bandana boy


    dubrov wrote: »
    Check your mortgage contract to see if they have a clause relating to renting out the property covering this.

    If it isn't there (and it isn't in many) there is nothing the back can do

    Never seen a mortgage contract that did not account for it being your primary residence


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    #65
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Thargor wrote: »
    So if you get a mortgage, buy a house, live in it and take your 14k tax free from the rent a room scheme, you can still write off all the mortgage interest against your income tax?
    I know of one person who has 2 rooms rented out at 200 a week and pays no tax
    Gets cash every week
    I assume they still get full mortgage relief,
    Reason they bought a 4 bed house as they wanted the area and its a forever home


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    #66
    Bandana boy
    Registered Users Posts: 4,327 ✭✭✭Bandana boy


    brisan wrote: »
    I know of one person who has 2 rooms rented out at 200 a week and pays no tax
    Gets cash every week
    I assume they still get full mortgage relief,
    Reason they bought a 4 bed house as they wanted the area and its a forever home


    if its a 200 total per week , then no need for it to be a cash deal he has no tax liability . if its 200 each then he is evading tax and his tennants can claim relief on that Rent up to 5 years later and dump your pal in the Merde


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    #67
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Bandana boy wrote: »
    if its a 200 total per week , then no need for it to be a cash deal he has no tax liability . if its 200 each then he is evading tax and his tennants can claim relief on that Rent up to 5 years later and dump your pal in the Merde

    Rent tax credits aren't a thing anymore, they ended in 2017.


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    #68
    Geuze
    Registered Users Posts: 13,385 ✭✭✭✭Geuze


    Thargor wrote: »
    So if you get a mortgage, buy a house, live in it and take your 14k tax free from the rent a room scheme, you can still write off all the mortgage interest against your income tax?

    If you own and live in the house, and have a mortgage, you may be getting TRS.

    Note that TRS is being phased out.

    https://www.revenue.ie/en/property/mortgage-interest-relief/index.aspx

    Overview
    Mortgage Interest Relief is a tax relief on the interest you pay in a tax year on a qualifying mortgage loan.

    You can claim Mortgage Interest Relief on interest paid by you on a loan used to purchase, repair, develop or improve the home. You can claim the relief up to 31 December 2020.

    You must have taken out a qualifying mortgage loan between 1 January 2004 and 31 December 2012.




    Loans taken out after 31 December 2012
    In certain circumstances, you may claim Mortgage Interest Relief for the years 2013 to 2020 for:

    a loan taken out in 2013 to construct your home on a site that you bought using a loan taken out in 2012
    a loan to repair, develop or improve your home, but only where:
    loan approval was in place in 2012
    you used part of the loan in 2012
    you used the balance of the loan in 2013.
    You must have received any required planning permission on or before 31 December 2012 to qualify for relief.

    You are deemed to have taken out the loan in 2012 if you meet the above conditions.


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    #69
    givyjoe
    Registered Users Posts: 3,287 ✭✭✭givyjoe


    awec wrote: »
    Honestly, I find this absolutely mind blowing (genuinely, not being a smart ass).

    I work in tech, and the hoops I have to jump through to access any customer data is insane, even if I looked up customers names without proper cause I'd be in serious ****. That bank employees have free reign here is amazing.

    Even the ones that have access to this data, I would expect they couldn't just do whatever they want. I stand humbly corrected!
    This simply boils down to bank staff here not knowing they're potentially gonna get themselves sacked by randomly looking up customer data, without a legitimate business reason for doing so.


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    #70
    L1011
    Registered Users Posts: 68,782 ✭✭✭✭L1011


    Thargor wrote: »
    So if you get a mortgage, buy a house, live in it and take your 14k tax free from the rent a room scheme, you can still write off all the mortgage interest against your income tax?

    No, as the specific relief in question doesn't apply to owner occupied properties whether rooms are rented or not


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    #71
    Cuddlesworth
    Registered Users Posts: 13,994 ✭✭✭✭Cuddlesworth


    givyjoe wrote: »
    This simply boils down to bank staff here not knowing they're potentially gonna get themselves sacked by randomly looking up customer data, without a legitimate business reason for doing so.

    In general, most banks are about a decade behind in IT security and practises. About the only thing saving them is that their systems are so old and archaic they end up with security through obscurity.


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    #72
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Bandana boy wrote: »
    if its a 200 total per week , then no need for it to be a cash deal he has no tax liability . if its 200 each then he is evading tax and his tennants can claim relief on that Rent up to 5 years later and dump your pal in the Merde
    200 per room per week
    That’s over 20k in my book
    Who’s to know.


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    #73
    Bandana boy
    Registered Users Posts: 4,327 ✭✭✭Bandana boy


    then he is evading tax which has punishments associated with it if he is caught .

    the likely hood of getting caught might be low , but if you break the law you always have some risk in being caught.


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    #74
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    brisan wrote: »
    200 per room per week
    That’s over 20k in my book
    Who’s to know.

    The Revenue may well find out. Each tenant knows. Each former tenant knows.
    Some others may easily find out if the tenants talk.


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    #75
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Claw Hammer wrote: »
    The Revenue may well find out. Each tenant knows. Each former tenant knows.
    Some others may easily find out if the tenants talk.

    Nobody will find out unless he's reported to Revenue.


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    #76
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    LawBoy2018 wrote: »
    Nobody will find out unless he's reported to Revenue.

    What do you mean , nobody will find out. The person who reports it has already found out. He may well come up in a Revenue audit. It is hard to disguise €400 a week. He may well fall victim to anti money-laundering legislation.


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    #77
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Claw Hammer wrote: »
    What do you mean , nobody will find out. The person who reports it has already found out. He may well come up in a Revenue audit. It is hard to disguise €400 a week. He may well fall victim to anti money-laundering legislation.

    Presuming he collects the rent via cash, how would Revenue ever find out? Don't be so innocent. It's happening everywhere.


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    #78
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Claw Hammer wrote: »
    What do you mean , nobody will find out. The person who reports it has already found out. He may well come up in a Revenue audit. It is hard to disguise €400 a week. He may well fall victim to anti money-laundering legislation.
    If you have a good job its not very hard to disguise 400 a week .
    How much do you spend a week on
    Socialising ,petrol ,take aways coffee ,holidays etc .
    Its not that difficult


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    #79
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    LawBoy2018 wrote: »
    Presuming he collects the rent via cash, how would Revenue ever find out? Don't be so innocent. It's happening everywhere.

    What does he do with the cash? He has to spend it sometime somewhere. The revenue can and do conduct lifestyle analysis using computer algorithms.

    The tenants might talk, in the pub or to neighbours. He like followed with the tenant at some point.

    Just because and getting cash doesn't mean no one will ever find out. If he is just taking €400 a week in cash, saying nothing and declaring nothing, he is an idiot.


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    #80
    Synode
    Closed Accounts Posts: 7,967 ✭✭✭Synode


    LawBoy2018 wrote: »
    Presuming he collects the rent via cash, how would Revenue ever find out? Don't be so innocent. It's happening everywhere.

    A tenant could report him. Or an ex tenant


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    #81
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Synode wrote: »
    A tenant could report him. Or an ex tenant

    Yes, to Revenue, as I said in my previous post.


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    #82
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Claw Hammer wrote: »
    What does he do with the cash? He has to spend it sometime somewhere. The revenue can and do conduct lifestyle analysis using computer algorithms.

    The tenants might talk, in the pub or to neighbours. He like followed with the tenant at some point.

    Just because and getting cash doesn't mean no one will ever find out. If he is just taking €400 a week in cash, saying nothing and declaring nothing, he is an idiot.

    I'm not condoning his behaviour but I'm being realistic. Revenue have far bigger fish to fry.


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    #83
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    brisan wrote: »
    If you have a good job its not very hard to disguise 400 a week .
    How much do you spend a week on
    Socialising ,petrol ,take aways coffee ,holidays etc .
    Its not that difficult

    If you buy petrol with cash, it stands out as relatively few people buy petrol with cash these days. The car has to go for an NCT periodically which will show the mileage done since the last NCT. It will be quite obvious to any tax inspector that petrol has been bought for cash. Going on holidays is going to require bookings and use of debit cards. If someone is out of the country for a period or even in the country and there's no sign of spending, it is a dead giveaway. Whatever chance there is of covering up a few points are cups of coffee €400 a week is a massive amount to cover up.


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    #84
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Claw Hammer wrote: »
    If you buy petrol with cash, it stands out as relatively few people buy petrol with cash these days. The car has to go for an NCT periodically which will show the mileage done since the last NCT. It will be quite obvious to any tax inspector that petrol has been bought for cash. Going on holidays is going to require bookings and use of debit cards. If someone is out of the country for a period or even in the country and there's no sign of spending, it is a dead giveaway. Whatever chance there is of covering up a few points are cups of coffee €400 a week is a massive amount to cover up.

    Lol!! How's life on mars?


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    #85
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    LawBoy2018 wrote: »
    Lol!! How's life on mars?

    It is obvious you have never been through a revenue audit. Let me know when you get back.


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    #86
    Synode
    Closed Accounts Posts: 7,967 ✭✭✭Synode


    LawBoy2018 wrote: »
    I'm not condoning his behaviour but I'm being realistic. Revenue have far bigger fish to fry.

    I hope you're not an accountant or tax advisor


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    #87
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    LawBoy2018 wrote: »
    I'm not condoning his behaviour but I'm being realistic. Revenue have far bigger fish to fry.

    Revenue often find it easier to target the small fish. The big fish are generally much more careful.


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    #88
    victor8600
    Registered Users Posts: 1,641 ✭✭✭victor8600


    LawBoy2018 wrote: »
    I'm not condoning his behaviour but I'm being realistic. Revenue have far bigger fish to fry.

    Unless the individual needs a Tax Clearance certificate for something, or the Revenue does a random check. Then the Revenue may chose to nitpick on any amount. I had to return something like €50 of the rent tax relief because I stopped renting halfway during one year.


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    #89
    LawBoy2018
    Registered Users Posts: 1,162 ✭✭✭LawBoy2018


    Synode wrote: »
    I hope you're not an accountant or tax advisor

    I repeat: I don't condone tax dodging, it's immoral. What I'm saying is that anyone who thinks the revenue have the time/resources to be analysing the amount of money people are spending on fuel/coffee live on another planet.


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    #90
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Claw Hammer wrote: »
    If you buy petrol with cash, it stands out as relatively few people buy petrol with cash these days. The car has to go for an NCT periodically which will show the mileage done since the last NCT. It will be quite obvious to any tax inspector that petrol has been bought for cash. Going on holidays is going to require bookings and use of debit cards. If someone is out of the country for a period or even in the country and there's no sign of spending, it is a dead giveaway. Whatever chance there is of covering up a few points are cups of coffee €400 a week is a massive amount to cover up.
    So I go to Kilkenny for a weekend.
    I cant use cash ??????
    I go into Cassidy travel and book 2 weeks in the canaries and I cant pay cash over a few weeks ?????
    i have done both numerous times
    As was said Revenue have bigger fish to fry and its easy to hide 400 a week
    Christ a meal for 2 and a few pints in a pub is 80-100 euro
    The pub will gladly accept cash
    I am not talking about laundering hundreds of thousands of drug money every week
    Do not forget 14k is tax free anyway


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    #91
    Synode
    Closed Accounts Posts: 7,967 ✭✭✭Synode


    LawBoy2018 wrote: »
    I repeat: I don't condone tax dodging, it's immoral. What I'm saying is that anyone who thinks the revenue have the time/resources to be analysing the amount of money people are spending on fuel/coffee live on another planet.

    You better believe they do if they start looking


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