Panel G: Ex­empt in­come — Page 19, Lines 412-417

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THIS part of Form 11 is only rel­e­vant where you have in­come which has an ex­emp­tion from in­come tax. Even though this in­come is ex­empt, you still need to en­ter the prof­its, gains, dis­tri­bu­tions or losses where re­quested. ARTIST’S EX­EMP­TION — LINE 412 If you are an artist who has pro­duced a work of artis­tic/cul­tural merit and the The Rev­enue Com­mis­sion­ers have ap­proved this, your prof­its from this work will be ex­empt from in­come tax. The ex­emp­tion is re­stricted to the first €50,000. In­come in ex­cess of this amount is tax­able and should be en­tered in Panel B of the Form 11. The ex­emp­tion only ap­plies to in­come tax. The ex­empt por­tion of your in­come is li­able to both PRSI and USC. PROFIT OR GAINS FROM WOOD­LANDS — LINE 413 IF you own wood­lands in Ire­land which are used com­mer­cially, the prof­its or gains are ex­empt from in­come tax and li­able to both PRSI and USC. RENT-A-ROOM RELIEF SCHEME — LINE 414) This can be quite a pop­u­lar relief as a rel­a­tively high num­ber of tax­pay­ers have cho­sen to let one or more of the rooms in their homes to ten­ants to help fund their mort­gage costs, etc. If you let a room (or rooms) in your home and the to­tal of the gross rents and any sums for food and laun­dry ser­vices in re­spect of the let­ting (ig­nor­ing all ex­penses in­curred) does not ex­ceed the an­nual limit for 2016 (€12,000), the prof­its are treated as nil for in­come tax, PRSI and USC pur­poses.

The relief is not due where the rel­e­vant sums are re­ceived from your child.

The relief does not af­fect any en­ti­tle­ment you may have to mort­gage in­ter­est relief or to the cap­i­tal gains tax ex­emp­tion on the dis­posal of your home.

Ac­cord­ing to a guid­ance note is­sued by the Rev­enue Com­mis­sion­ers, this relief ap­plies to long term lettings so as the ma­jor­ity of Airbnb lettings are short term, you will not be able to use this ex­emp­tion if you re­ceived in­come for such short term lettings. CHILD­CARE SER­VICES — LINE 415 If you are pro­vid­ing Child­care Ser­vices in your home, your gross an­nual in­come (be­fore ex­penses) from the pro­vi­sion of th­ese ser­vices may be ex­empt from tax if it does not ex­ceed €15,000 in 2016.

This in­come is ex­empt from in­come tax and USC but a sep­a­rate charge to PRSI arises.

Where your gross in­come ex­ceeds €15,000 the net in­come af­ter ex­penses is tax­able and should be re­ported in Panel B.

No more than three chil­dren may be cared for at any one time and you must have no­ti­fied the Health Ser­vice Ex­ec­u­tive (HSE) that you pro­vided child­care ser­vices in 2016.

Claim­ing this ex­emp­tion does not af­fect your en­ti­tle­ment to mort­gage in­ter­est relief in re­spect of, nor cap­i­tal gains tax relief on gains from the dis­posal of, your home.

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