Tax implications for father letting home (PPR).

Dial Hard

This house is around the corner from me and perhaps the rules have changed since 2014 (the RAR threshold has, anyway) but this lady's husband was pretty much the second most senior person in Revenue so would have been aware of all the tax implications. Seems to fly directly in the face of a lot of the advice being given here.

But as I said, perhaps the rules have changed.

As an aside, I've actually been in that side unit and it's FAB.

https://m.independent.ie/life/home-garden/homes/a-magic-mirror-to-earning-potential-rent-a-room-scheme/30296793.html

DownByTheGarden

https://www.boards.ie/discussion/comment/120708551#Comment_120708551

Much the same as what I have done except that mine wasnt a garage when we moved in, but it was before. When we moved in it was a couple of rooms that we partitioned off at the hall and knocked a patio door for it in the side wall of the house. We partitioned off the side of the garden for it too. Its effectively a garden granny flat with a door inside to the main house that is never used. But legally its just another couple of rooms in the house with kitchenette and an en-suite in them. At the moment its one granny flat with a living room and separate bedroom with an en suite. I was tinkering around with plans to put in another ensuite and another kitchenette and make it 2 granny flats as they are both very large rooms in it, but I havent got the energy and its fine now as the in laws are living in it for now.

The plan was that when we go on our travels in a few weeks the inlaws were going to move into the main house and we will rent-a-room the granny flat, but they have decided now that they want to stay in the granny flat and we will rent-a-room a couple of rooms in the main house. We will be back every few weeks for a few days anyway.

Ive been told by an estate agent I had up valuing it for a potential remortgage that what we did for less than €5k in about 3 weeks has added over €120k to the value of the house.

del4646

Die Hard/DBTG,

Thank you for that.

A bit old but the article expresses what my father is trying to achieve. Also consistent with what the man from revenue was saying.

Nice job on the conversion DBTG and great to hear you got a 120k uplift for your hard work.

All things considered I believe my father will let out the main house (14k RAR) and retain the 'granny flat' (2 bed) for himself.

DH the article makes sense as converting the 4 bed into 2 apartments would undermine the integerity of a family home.

It also means having to re-convert if it is eventually sold - possibly devaluing what is a good family home.

Keeping it simple appears to be the best option.

Many thanks to all for your comments.

Del.

Claw Hammer

https://www.boards.ie/discussion/comment/120706093#Comment_120706093

You have created 2 dwellings where there was 1. No planning. Did you bring a Section 5 application to your local counscil?

Claw Hammer

https://www.boards.ie/discussion/comment/120706616#Comment_120706616

The revenue definition of a granny flat differs from the planners which differs again from the RTB. The revenue will give tax relief for a dwelling under rent a room which the RTB will say is a separate dwelling and therefore a tenancy and not a licence and the planners will say that it is a sub division of a planning unit and requires planning permission to be legal. people do all kinds of things and sometimes nothing happens and other times there is a nightmare.

Calahonda52

https://www.boards.ie/discussion/comment/120714291#Comment_120714291

From a BER perspective, the connecting door makes it still one dwelling, with one MPRN

If the door was built up, 2 dwellings with a shared MPRN

If GF less than 50m2, then no BER required

DownByTheGarden

https://www.boards.ie/discussion/comment/120714310#Comment_120714310

Thats like someone on the internet telling me that there might really be a boogie man under my bed when my parents told me their wasnt.

I'll be sure and let the professionals who I've checked with know what you think. I wonder if they'll tell me that you are right and they are wrong.

Feel free to provide examples of where what you have posted above has happened though. I'll quote here to make sure you post examples of what you stated instead of going off and getting examples that only partially fit the situation so are not relevant. So go on. Back up your boogie man statement.

"The revenue will give tax relief for a dwelling under rent a room which the RTB will say is a separate dwelling and therefore a tenancy and not a licence and the planners will say that it is a sub division of a planning unit and requires planning permission to be legal."

Claw Hammer

So you didn't make a section 5 application then.

This if from an RTB report

8. It was evident the top floor was occupied by the Tenant as a residential unit. 9. There was a bedroom, shower/bathroom and sitting room within the top floor unit. 10. The Tenant had exclusive access to this unit, and it had its own locked door. 11. Within the unit there was a kettle, toaster, two ring hob and fresh water supply. 12. The Tenant had access to separate cooking and washing facilities on the floors below and to a roof garden above. 13. There was a dispute between the parties as to whether these areas were exclusively for the use of the Tenant or not. 14. The Tribunal finds the top floor unit was a self-contained residential unit for the purposes of the Residential Tenancies Acts and whether or not the Tenant had exclusive use of the facilities on the other floors does not alter its finding in this regard. 15. It was accepted the Landlord had no access to the top floor unit occupied by the Tenant. 16. He retained control over what he described as another part of the same building, comprising an office with living space. 17. He said he did not cook but confirmed he had access to separate kitchen facilities to that used by the Tenant and that he did not use the same kitchen facilities as the tenant. 18. Under the rent a room scheme the rented room or rooms can be a self-contained unit within the Landlord’s house. 19. Therefore, the Tribunal’s finding that the Tenant occupied a self-contained residential unit does not mean the Landlord could not let the unit under the rent a room scheme in circumstances different to those pertaining to the current tenancy. 20. The RTB remit does not extend to the Rent a Room scheme, where the Landlord and the Tenant share the same property. 21. The Tribunal finds that the Landlord and the Tenant did not share the same residential property. 

DFB-D

https://www.boards.ie/discussion/comment/120714552#Comment_120714552

Have you the link to this report please?

DownByTheGarden

https://www.boards.ie/discussion/comment/120714552#Comment_120714552

So that would be a no to you being able to backup your random musings then.

Why not post the full thin and compare it to what we are actually talking about here?

Because it doesnt fit is my guess so you selected a few points that make it suit your argument.

You are so full of waffle. You do it all the time.

Claw Hammer

https://www.boards.ie/discussion/comment/120720927#Comment_120720927

The decision is not on line so I can't post a link. Nothing to do with it being contradicted elsewhere.

DownByTheGarden

https://www.boards.ie/discussion/comment/120721328#Comment_120721328

Thats what I thought. About time you admitted it. You are just throwing mud to see what sticks to the wall for you. You're need to pretend you know something you dont over everyone else is high.

Claw Hammer

Not every decision is online. Just because something is not online doesn't mean it didn't happen. New claims to have checked everything out yet YOU didn't even make a Section 5 application. Abuse is not argument. Time you learned that.

DFB-D

https://www.boards.ie/discussion/comment/120722083#Comment_120722083

But what is your source for the text, can you post the case name/year?

Not doubting you btw, but I am interested in the case.

Claw Hammer

https://www.boards.ie/discussion/comment/120722540#Comment_120722540

I have a copy of the decision. It is not on the RTB site for some reason. Putting up the case name and year if the RTB have not put it up is potentially serious.

DFB-D

https://www.boards.ie/discussion/comment/120722595#Comment_120722595

Every tribunal case is public record, so no issue.

If not online, it is because of a tech glitch on the website which they are fixing anyway (cases pre 2016 are not currently searchable due to the archive link not working), so no harm in naming the case!

Claw Hammer

There is no point in giving the name of the case if it can't be found on a search. I don't know why it is not online and if it comes online at some point I will post the link.