Rental income tax is applicable to you if you are renting a residential property (such as a house or flat) or a commercial properly (like office space or a warehouse). You are even subject to tax on rental income if you rent a part of your own property to another tenant, for example if one room is rented in the house in which you reside. Find the best tax return preparer as soon as possible, For more details you can read here http://www.mcjla.org/how-to-deal-with-tax-preparation/ so that there will be no problem with the government which worst can be resulted into bigger penalties.
Rental income tax or landlord tax
Rental income tax or landlord tax has to be declared in Ireland by completing an Irish tax return, which is then sent to the Revenue Commissioners. This form 11 return is a summary of all your earnings including the earnings from renting your property to a third party and tax is then calculated and claimed based on your income.
While many landlords decide to file their own rental income tax forms, the process can be quite confusing and you may end up making a mistake or not claiming for expenses that are legally deductible in Ireland.
There are also some common misconceptions within renting and rental tax that many people will not be aware of, while there are some finer nuances of becoming a landlord that are difficult to understand. For example, if your property (or part of your property) is rented to a local council then there may be fees that can be waived. It is also a common misconception that you do not need to pay tax on rental income if the earnings you receive are less than the mortgage payments; this is not the case, and you are still liable to pay tax on the amount earned. It may also be possible to deduct wear and tear repairs and advertising for tenants from your rental income, meaning you will have to pay less tax or in some cases pay no tax at all. Just do what is necessary for tax preparation and you will have a peace of mind at the end.
As you can see, filing your own tax return can be a confusing and convoluted process if you are not entirely sure what you are doing. It is also possible to incur some interest, penalties and/or surcharges if you are believed to have purposely completed an incorrect tax return; a minefield of possible mistakes could lead to this conclusion. There are so many tax professionals that you can get online, so no need to rush on choosing, take your time and select the best available tax preparer.
It is, therefore, a good idea to use an expert in finance, tax and mortgages; and where better to turn than a highly skilled and knowledgeable chartered accountant? Chartered accountants are experienced in completing and filing tax returns for individuals and businesses, and by using a trained accountant you could save money and ensure that a correct tax return form is returned for all of your rental income earnings.