Wednesday, 8th August 2012
Marie Doody owner of TaxAssist Accountants, 48 John Street, Waterford.
I have a Buy to let property, but because of the size of the mortgage, I do not make any profit from it. I am employed and have never submitted a tax return before- do I need to now?John Waterford
This is a very common question. The short answer is yes. You are obliged to submit a tax return if you are in receipt of non PAYE income. This is irrespective of whether the property is profitable or not.
Although the rental income goes fully towards paying the mortgage you may still have a taxable profit. This is because only the interest element of the repayments is allowable as a tax deduction. Since April 2009 this has been reduced further and only 75% of the interest qualifies for a tax deduction. You must also have registered the property with the Private Residency Tenancy Board (PRTB) to claim a deduction for interest incurred.
If you have made a taxable loss on your rental property this loss can be carried forward and offset against future rental profits.
If you would like some assistance in registering with Revenue and completing your tax return, please feel free to get in touch with your local TaxAssist Accountant. We provide accountancy services in Waterford and throughout the country
Letters to the Editor
- Editorialread more »
Google AlertWhen a company which has it's European Headquarters here in Ireland is called 'evil' and 'immoral' by M.P.s in The House of Commons you tend to sit up and take notice. The particular company that was being referred to was Google and the reason it had enraged M.P.s in London was because even though it has a big operation there and conducts a lot of business there it pays no corporate tax. It does this by having all of its financial transactions finished here in Ireland. And the company here is …
We're delighted to announce the launch of the new-look Waterford Today website. Tell us what new features you would like to see added?
Total votes: 0 Refresh results