Tax free renting of farm land
Tax Free renting of farm land
An person may be entitled to an exemption from income tax of rent income arising from leasing of farm land.
Leases between close relatives do not qualify.
Qualifying lease is a lease of farm land which is in writing or evidenced in writing, is for a definite term of 5 years or more, and is made on an arm’s length basis between one or more qualifying lessors and one or more qualifying lessees.
Thresholds for exemption where qualifying lease is taken out on or after 1 January 2015
- €40,000 where all the qualifying leases are for 15 years or more,
- €30,000 where all the qualifying leases are for 10 but less than 15 years,
- €22,500 where all the qualifying leases are for 7 but less than 10 years, and
- €18,000 where all the qualifying leases are for 5 or 6 years.
Any queries on same give me a call on 091 763817 or email at oliver@taxreturnhelp.ie
