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FINANCIAL EXAMPLESSection
50 Tax Relief is simple and is in addition to all other reliefs that
are available. Below are two simple examples of how Section 50 helps
to shelter rental income from tax. |
||||
|
Client
A
|
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|
Rental
statement 2002
|
||||
| Annual
Rental Shop Premises |
15,800.00
€ |
|||
| Tax
payable at 42% |
6,636.00
€ |
|||
| PRSI
payable 5% |
790.00
€ |
|||
| Nett
rental income |
8,374.00
€ |
|||
|
Rental
statement 2003
|
||||
| Annual
Rental Shop Premises |
€
15,800.00 |
|||
| Rental
4-bedroom apartment at Brookfield Hall |
€
16,000.00 |
|||
| Nett
rental income |
€
31,800.00 |
|||
| Capital
allowances from Brookfield Hall S.50 scheme |
-€
31,800.00 |
|||
| Tax
payable |
Nil
|
|||
| PRSI
payable |
Nil
|
|||
| S.
50 calculation: |
||||
| Purchase
price 4-bedroom unit |
€
296,000.00 |
|||
| 87%
capital allowances |
€
257,520.00 |
|||
| Capital
allowances used against rental income 2003 (see above) |
-€
31,800.00 |
|||
| Capital
allowances carried forward for use against future rental income |
€
225,720.00 |
|||
|
Note: The above figures are for illustrative purposes only. It is the responsibility of each client to seek independent tax advice
|
||||
|
Client
B
|
||||
|
Rental
statement 2002
|
||||
| Annual
Rental Residential Premises |
7,500.00
€ |
|||
| Tax
payable at 42% |
3,150.00
€ |
|||
| PRSI
payable 5% |
375.00
€ |
|||
| Nett
rental income |
3,975.00
€ |
|||
|
Rental
statement 2003
|
||||
| Annual
Rental Residential Premises |
€
7,500.00 |
|||
| Rental
2-bedroom apartment at Brookfield Hall |
€
8,000.00 |
|||
| Nett
rental income |
€
15,500.00 |
|||
| Capital
allowances from Brookfield Hall S.50 scheme |
-€
15,500.00 |
|||
| Tax
payable |
Nil |
|||
| PRSI
payable |
Nil |
|||
| S.
50 calculation: |
||||
| Purchase
price 4-bedroom unit |
€
238,000.00 |
|||
| 87%
capital allowances |
€
207,060.00 |
|||
| Capital
allowances used against rental income 2003 (see above) |
-€
15,500.00 |
|||
| Capital
allowances carried forward for use against future rental income |
€
191,560.00 |
|||
| Note:
The above figures are for illustrative purposes only. It is the responsibility
of each client to seek independent tax advice |
||||
Further
details from: Castletroy Partnership, Tramore House, Reeveswood, Douglas, Cork
Phone:(021)4292922 Fax:(021)4293800 Email:info@brookfieldcastletroy.com
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