Rental income

[Stan Streason]

At what point does a friend getting my place for free but paying me for the electric they use; to paying me a small nightly sum once again only to cover direct useage; to paying me a bigger sum to go towards some of my standing costs, become taxable rental income?

I am certainly considering not giving the property away any more and at least trying to recoup enough for the additional 2nd home owner tax.  I am talking less than €1,000 a year here. 

I would like to at least know the strict legal position please.

Thanks

[parsnips]

[quote user="Stan Streason"]

At what point does a friend getting my place for free but paying me for the electric they use; to paying me a small nightly sum once again only to cover direct useage; to paying me a bigger sum to go towards some of my standing costs, become taxable rental income?

I am certainly considering not giving the property away any more and at least trying to recoup enough for the additional 2nd home owner tax.  I am talking less than €1,000 a year here. 

I would like to at least know the strict legal position please.

Thanks

[/quote]Hi,

  The legal position is  that all rents are taxable and declarable less expenses and tenan'ts contgribution to utilities charges etc.

[Stan Streason]

Thanks but I am still confused.  At the moment I dont rent out my property, guests do their own cleaning and laundry, cut the grass and leave me a few bottles of wine or make sure there is plenty of beer in the fridge.  If someone gets unlucky and something runs out (gas bottle, petrol for mower, washing poweder etc) they replenish it, otherwise they use whatever is already there.

What is my obligation in the following scenario?

Occupied by me or by direct family -  I pay everything - say 10 weeks a year

Occupied by friends say 4 weeks a year at €250 a week so €1,000 in total.

My current property taxes are about €2,000, my insurance, water and electric standing orders are about another €1,000.  I pay about €500 a year for someone to open, close my pool, supply me with chemicals and look in every now and again to make sure everything is running smoothly. Generally (unless someone is unlucky) I pay for all household cleaning and maintenance materials (oh and logs for winter).  I even have a french prepay mobile for local calls that people use.

Do I have a declarable and taxable income?

[parsnips]

Hi,

Technically your 1000€ -odd is taxable income which if you declared under the regime for gites would , because I guess you are UK resident, attract tax of 20% of 29% of the income , ie 58€ plus CSG of 36€, both of which come under the non-collectible limit. My advice would be to forget about declaring . If at any time you get a query from the tax office , then declare,--provided you respond promptly to any such request there should be no penalties --(which anyway only consist of a % increase in the tax due.)

    

[Stan Streason]

Brilliant thank you