Rental property tax mocks common sense
JOHN Gormley put a tax of €200 on each let flat (NPPR, Non Principal Private Residence). I pay €1,000 on five let flats. Now I'm told I cannot deduct this from my rental income for tax purposes. Assuming a tax rate of 50pc, that means I must earn €2,000 to have a net income of €1,000, to pay the NPPR tax.
In the same way, I should increase the rent by €2,000 and pay tax of 50pc, leaving me €1,000 to pay the NPPR.
A property tax that is not deductible from the rental income for tax purposes is against jurisprudence and common sense. The NPPR proves that John Gormley had no common sense.