Willie Penrose (Longford-Westmeath, Labour)
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Question 332: To ask the Minister for Social and Family Affairs if tax exempt income such as long-term rent for farmers over 55 years to a non-connected person is subject to PRSI deduction; and if she will make a statement on the matter. [9896/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Rental income, net of any deduction due under Section 664 of the Taxes Consolidation Act 1997, is subject to PRSI deduction. Section 664 of the Taxes Consolidation Act 1997 provides that eligible individuals (individuals over 40 years of age or individuals who are permanently incapacitated by reason of mental or physical infirmity from carrying on a farming trade) can claim a deduction against the aggregate of the leasing income from the farm and any other rental income received.

The amount of the deduction depends on the duration of the lease. In respect of leases made on or after 1 January 2007, I understand that the amounts concerned are as follows: €12,000 where the lease is for a term of at least 5 years; €15,000 where the lease is for a term of at least 7 years; and €20,000 where the lease is for a term of at least 10 years. These deductions do not apply in the case of leases between family members or other close relatives.