With this blog post, we are continuing on the property theme from our last blog about the Local Property Tax (LPT). At the risk of scaring you all off, today we’re tackling something that might not be as big a problem for people as they might think – Undeclared Investment/Rental Properties.
There are many of us who availed of the opportunity, or taken the risk, depending on your point of view, to invest in a second (or perhaps even a third/fourth) property in what might be described as the “better times”, i.e. the glorious Celtic Tiger era. Since that infamous economic crash occurred in 2007/2008, many of us have been experiencing the pain of living with these additional investment properties. Many of you have been doing so without making a sufficient enough return on rental income to cover the mortgages or perhaps even service the interest. If you have been able to pay the interest, don’t forget that you can claim tax back on your mortgage. If you bought your investment property between the “boom” years of 2004 and 2008, the rate of mortgage interest relief available is even higher. Irishlandlord.com can provide you with further information regarding investment property taxation.
Given that economic times have remained harsh and very difficult, some of us may have chosen not to declare our investment properties for fear of incurring extra cost. You may fear the additional financial burdens of the new local property tax (LPT) or second home taxes, and choose instead to “save money” by not declaring your second home. However, this is a false saving….
Revenue is determined to catch-up with everybody and will undoubtedly be harsh on anyone who has not voluntarily declared their investment properties. But, it might not be all bad news! As alluded to already, most rental/investment property owners will have incurred losses on these properties over the last few years. If that’s the case with you, you may able to offset these past losses against future rental income profits!
The key to this is to declare and register all your properties now with Revenue. It will prevent a more lengthy and costly process if Revenue have to go chasing you. It will also save you a lot of time, hassle and worry.
You can always talk to us for advice………we’d be glad to help!
Call in confidence 087 90404752 or email us at firstname.lastname@example.org