Sunday Indo: Time to get out of rental property

From the Sunday Independent, 7th Jan 2007, an article by Alan Ahearne, a former senior economist at the Federal Reserve Board in Washington DC. He now lectures in economics at NUI, Galway… here’s his profile …

economics.nuig.ie/personnel/ … rson_id=72

Link to the full story;

unison.ie/irish_independent/ … e_id=15078

(Subscription required)

Blue Horseshoe

Here is an index on the competitiveness of the Irish** effective tax rates** on property.

Does anyone else think that Grant Thorton are being a bit generous with their expenses on this rented property? Do landlords usually write off as much depreciation on a property each year (Assuming this was written when house prices WEREN’T falling)
globalpropertyguide.com/Europe/Ireland/Tax-Pages

Just taking the first example of a monthly rental income of EUR 1,500

Couple’s joint monthly
Annual Rental Income → EUR 18,000 (12 mths x EUR 1,500pm)
**Less Costs → EUR 3,600
Less Depreciation → EUR 5,357

Taxable Income → EUR 9,043

Income Tax rates
Up to EUR 68,00 20% → EUR 1,809 (EUR 9,043 x 20%)

Annual Income Tax Due → EUR 1,809

Deductions
Withholding Tax 20% → (EUR 3,600)??>
Net Annual Tax Due → EUR 1,791??>

Tax Due as % of Gross Income 10.05%**