Hi there!
I have a few questions regarding having to fill in an IR3 (plus IR3R form) for the 2014 tax year. My fiance and I purchased a property last year in July 2014. It was already being rented out, so we just took over as landlords and got ourselves a property manager.
This is the first we'll have to file an IR3 and IR3R form. We've got a copy of the IRD's IR264 booklet, which helps to explain how to fill an IR3R form but there were a couple of things that weren't too clear. I've also contacted the IRD and got some direct answers but they were vague on others, seeming to say that I just need to "use the website"...which I've tried to, but being new to all this, have found it a little confusing. I'm hoping someone here will be able to shed some light?
My first enquiry is regarding how to fill in our individual IR3 forms in relation to receiving rental income because we both own the property. The lady at the IRD seemed to say that we should just halve the numbers. Does this mean we put in half the nett rental income received in our individual IR3 forms? And what about the IR3 form? Do we fill an IR3 individually and halve all the figures there too? Note that we'll be wanting to fill this online.
My second enquiry, and this is the one I've been having problems with the most, concerns Depreciation. How do we calculate this if the assets were already in place of the property when we bought it? The property was already being rented out and we just took over with the tenant staying on.
Unfortunately we didn't get a chattel valuation when we bought the place so have no real idea on how old things are. Assets that were already in place when we bought the property include: heat pump, multi-burner, water heater, drapes, carpets and stove. We'd be able to determine the age of the multi-burner as it's in the District Council's report but I wouldn't know how old the other assets are.
With regards to building depreciation, I was told that we can't claim this anymore as it was scrapped in the 2012 tax year?
That's all for now. Thanks in advance for taking the time to read this and hopefully someone will be able to help! I realise that some of the questions may seem a little silly, but we're very new to this and want to make sure we do this right, so any advice is hugely appreciated!
Thank you!
I have a few questions regarding having to fill in an IR3 (plus IR3R form) for the 2014 tax year. My fiance and I purchased a property last year in July 2014. It was already being rented out, so we just took over as landlords and got ourselves a property manager.
This is the first we'll have to file an IR3 and IR3R form. We've got a copy of the IRD's IR264 booklet, which helps to explain how to fill an IR3R form but there were a couple of things that weren't too clear. I've also contacted the IRD and got some direct answers but they were vague on others, seeming to say that I just need to "use the website"...which I've tried to, but being new to all this, have found it a little confusing. I'm hoping someone here will be able to shed some light?
My first enquiry is regarding how to fill in our individual IR3 forms in relation to receiving rental income because we both own the property. The lady at the IRD seemed to say that we should just halve the numbers. Does this mean we put in half the nett rental income received in our individual IR3 forms? And what about the IR3 form? Do we fill an IR3 individually and halve all the figures there too? Note that we'll be wanting to fill this online.
My second enquiry, and this is the one I've been having problems with the most, concerns Depreciation. How do we calculate this if the assets were already in place of the property when we bought it? The property was already being rented out and we just took over with the tenant staying on.
Unfortunately we didn't get a chattel valuation when we bought the place so have no real idea on how old things are. Assets that were already in place when we bought the property include: heat pump, multi-burner, water heater, drapes, carpets and stove. We'd be able to determine the age of the multi-burner as it's in the District Council's report but I wouldn't know how old the other assets are.
With regards to building depreciation, I was told that we can't claim this anymore as it was scrapped in the 2012 tax year?
That's all for now. Thanks in advance for taking the time to read this and hopefully someone will be able to help! I realise that some of the questions may seem a little silly, but we're very new to this and want to make sure we do this right, so any advice is hugely appreciated!
Thank you!
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