The cost of the premium can be claimed as a tax deduction against the rental income provided it is a death only policy linked to your mortgage with no other benefits attaching. Stamp Duty (Transfer Tax) Stamp duty in respect of non-commercial (residential) properties has been reduced substantially in recent budgets. McMahon & Co are very experienced in this area and can provide tax advice for landlords, and can help landlords with their tax returns. Landlords paid tax on 59% of rental income in 2016 Revenue’s figures show landlords claimed tax deductions of 41% on income of €2.6bn that year Thu, Oct 11, 2018, 01:05 and rental income of a close company. For most investors, the tax on rental income would be charged at 41%. The taxable rental income is calculated in the same way as taxable rental income from an Irish property with the same deductions and allowances being available. Guide to Irish Rental Income Tax Returns for Non-Resident Landlords: If you own rental property in Ireland but are not currently living in the country, you are considered a non-resident landlord.. All non-resident landlords must declare any Irish rental property to the Revenue Commissioners, file a tax return for any income earned, and pay any rental income tax for which you are liable. There is a de minimis threshold of €2,000 below which the surcharge will not apply. Rental Property owners / landlords in receipt of rental income from residential or commercial property are obliged to submit tax returns annually, whether the rental property is profit making or not. List your total income, expenses, and depreciation for each rental property on the appropriate line of Schedule E. Apply a reduced tax rate (for example, 25 per cent corporation tax rate) to rental income. For individuals, rental income is treated in a similar way to your normal income from work, and is taxed at the same rates. If you rent real estate such as buildings, rooms or apartments, you normally report your rental income and expenses on Form 1040 or 1040-SR, Schedule E, Part I. ‘Profits’ for this purpose consist of income (business or trading income comprising active income and furniture, electrics etc. Calculation of net rental income for tax purposes : Calculation Value; Total rental income: €11,010-€290: €10,720: Deduct wear and tear (€2,400 @ 12.5%) + (€8,000 @ 12.5%) €1,300: Taxable rental income: €10,720 - €1,300: €9,420 Tax Facts 2018 3 Business taxation Corporation tax Corporation tax is charged on the worldwide profits of companies that are tax resident in Ireland and certain profits of the Irish branches of non-resident companies. Professional service companies are liable to a surcharge of 15% on 50% of its undistributed trading income and a surcharge of 20% on the undistributed rental and investment income. Tax Saving Tip-#3 Tax Allowable Expenses which are allowed over 8 Years (12.5% rate) include the cost of the fit-out of the property e.g. A company prepares accounts to 31 December each year. Interaction of Corporation Tax Loss with Income Tax Property Losses Example. Rental Income. In general, rental income from foreign property is computed on the full amount of the rental income receivable in a year regardless of whether the income is ever received in Ireland.