Looking for non judgemental tax advice

Zascar

I bought a small apartment in the country way back in 2004 which sank to less than half it's value in the crash and never really recovered. In all that time it's cost me a fortune topping up the mortgage, paying maintenance and fees, and LPT and rental income tax.

A while back I was suffering financially for a few years and couldn't afford to pay the rental income tax. A few years went by and I still didnt pay it, I thought they'd come chasing me but nothing ever happened. Afraid of how big it may have grown, stupidly I ignored it and and now its been about 10 years. I would like to try to settle things before it blows up in my face.

The rental income was very small - less than the mortgage - but Ive no idea what the bill may be with penalties. I'm wondering if negotiation is possible or is that only if you owe millions?

Only only paid 130k for it and it literally only came back above this value this year. I no longer live in Ireland, If its a lot I'll have to sell it to pay the taxes.

Wondering if anyone here has ever been in a similar situation and do you have any advice as to how I can sort things best?

enricoh

Have you tenants in it at the minute? Are they there long?

Sounds like you would be better off selling it, hard to do if tenants in tho.

My missus in same situation, panic bought in Celtic tiger, now has tenants on poor rent n no rent tax paid in 10 year. Tenants no hassle for 10 years tho but revenue will take to the cleaners

relax carry on

So you can seek to sort it with Revenue yourself by making a disclosure to regularize your tax affairs or contacting a professional to do it for you. Just remember that your mortgage amount has nothing to do with your rental tax return. The only allowable cost related to your mortgage would be the interest paid assuming you had the tenancies registered with the prtb. Couple of links below for you.

https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

https://www.revenue.ie/en/self-assessment-and-self-employment/making-a-disclosure/index.aspx

https://www.revenue.ie/en/starting-a-business/paying-your-tax/tax-payment-difficulties.aspx

Mr Disco

mortgage interest, mgt fees, repairs etc can be offset. If those exceed your rent then you won’t have a liability

Mrs OBumble

your mortgage amount has nothing to do with your rental tax return.

Depends if the mortgage was obtained for the rental property or not.

I'd strongly advise getting a tax professional to help prepare a disclosure to revenue: things may not be as bad as they seem. And it's always best for you to disclose rather than them to discover.

Lenar3556

How much was a typical years rental income?

Kaisr Sose

Definately get an accountant and the cost is deductable.

The fact you are non resident complicates tax matters a bit. See below.

https://www.revenue.ie/en/property/rental-income/non-resident-landlords/index.aspx

Being non resident with no other Irish income may help lower the penalties on tax due. This is because you may be entitled to some or all of your tax credits (excl PAYE).

RTB registration

You need to register the tenancy with the RTB going back from tax year 2019. This is important as you cannot deduct any mortgage interest (100% allowed from 2019) as an expense if the tenancy is not registered.

You can retrospectively register and pay the penalty for late registration.

See www.rtb.ie

Registration will save you much more than it costs. This is very important to lower your taxable earnings, and thus reduce interest /penalties on tax due.

Non Principle Private Residence charge (2009-2011)

Unpaid NPPR charge is not a Revenue matter and only becomes a financial matter if you close a sale before 1 April 2025.

Here the time past and that you did not sell, is on your side.

Good news... Any liability to pay NPPR on sale and substantial late penalties for 2011 will expire 31 March 2025. 2009 and 2010 have expired already. So from 1 April 2025, no more NPPR liability on sale. Note....If you plan to sell, and did not pay NPPR, do not close before 1 April.

Again NPPR is not relevant to your non payment of income tax to Revenue.

Finally, what @Mrs OBumble posted about the mortgage is not relevant to Revenue. Your bank won't care as tax is not their interest..Revenue don't care about the bank.

However, it is absolutely correct that the outcome for you is better if you self declare, rather than Revenue initiate it. In saying that, have they got a way to contact you?

Maybe they have already tried to but being non-resident makes it much more difficult. Thats why they like to get the tax deducted at source for non-resident landlords.