gas Posted October 21, 2005 Share Posted October 21, 2005 We have recently purchased a new small house and have it rented out. We are now thinking about buying an additional 4 houses, which we expect to generate about €35,000 to €42,000 in gross rental income per year. We visited the local tax office and after spending 2 hours asking questions, have come away none the wiser, plus a form to fill in for next year. Essential they told us, complete the form, bring it in next february and they would compute the amounts due. Before we proceed with purchasing additional property, we need some advice, perhaps someone may be able to advise us. The questions we have are as follows. 1. If the rental income is below €30,000 is one allowed a 40% reduction in respect of costs.2. If the above is correct, can one have two lots of €30,000 by splitting the income between husband and wife.3. Based upon a 2 part unit, how much tax would be payable.4. How much Social security is payable.5. Provided the houses are new build, would the additional 2.5% tax be irrelevant.6. Would we have to register for TVA, and if so what are the appropriate thresholds.7. Regarding the payment of CGT, what deductions would be appropriate after 10 years of ownership.8. Would we have to pay wealth tax on the above properties, or would they be excluded as being business assets. Link to comment Share on other sites More sharing options...
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