Farmhouse Plans: Is Rent Tax Deductible

Is Rent Tax Deductible

Where rent is paid to a landlord who is not resident in the State, certain obligations may arise for the tenant. If the landlord has an agent in the State to whom the rent is paid then no obligations arise. If however rent is paid directly to the landlord (this includes payment directly into a bank account held by the landlord) then the following actions must be taken. The tenant must deduct 20% of the rent due from the amount paid over to the landlord. This 20% must then be remitted to Revenue. The local Revenue Office should be contacted to make the appropriate arrangements for the collection of this charge. The remaining 80% of the rent due should be paid over to the landlord. At the end of the year the tenant should furnish the landlord with. This form gives details of the amount of the rent that was paid over to Revenue. The landlord can then claim this amount as a credit on their annual Tax Return.Credit for rent paid will be withdrawn on a phased basis over the next 7 years. To see the maximum amount of the credit that will be due, see.

The credit for the years 2011 applies to individuals who were renting a on 7 December 2010. No credit is due to individuals who began renting after 7 December 2010.