Rent a room relief Q

jenniwenni · 28-09-2009 1:51pm #1

My friend has a little self contained 2 bed apartment joined on the side of her house. The tenants have all their own bills etc. There is however, a connecting door between her house and this apt.

At the moment she is making a profit of about 8K per year on this. Does any one if she would she be entitled to rent a room on this?

Thanks for any replies

censuspro · 28-09-2009 2:01pm

Is the house her principal private residence?

Is the income less than €10,000 per year?

If the answer to both questions is yes then she can avail of rent a room relief.

jenniwenni · 28-09-2009 6:10pm

censuspro wrote: »

Is the house her principal private residence?

Is the income less than €10,000 per year?

If the answer to both questions is yes then she can avail of rent a room relief.

Yes the apt is an extension on the side of her PPR and she does make less than 10k. It's just the fact that it is an apt rather than a just a room that made me unsure. Thanks

censuspro · 28-09-2009 9:25pm

Remember that income is not the same as profit. By income I mean the total rent teceived not what her profit is after she pays bill mortgage etc.

jenniwenni · 29-09-2009 8:43am

censuspro wrote: »

Remember that income is not the same as profit. By income I mean the total rent teceived not what her profit is after she pays bill mortgage etc.

Ah, I thought it was 10,000 after all expenses. Is this not the case? Either way she is still under the 10k, she has no mortgage int exps, just a bit of repairs and maintenance

Legend100 · 29-09-2009 11:09pm

no it is the gross income that is capped at 10K so expenses are not taken into account.

And remember that you do not get the first 10K free if you have more than 10k.

up to 10K is tax free, any more than 10K and you are taxed on the lot!

TaxingTimes · 30-09-2009 3:23pm

In my view, this would not fall under the "rent a room" scheme. I would imagine the tenants do not have full access to the other parts of the house to use as they like (e.g. kitchen and living rooms).

Also it would depend on the tenancy agreement. Rent a room is covered under a licence agreement, not a tenancy agreement - which is in place?

More information would be needed in this regard to ascertain the position.

Mr. Incognito · 30-09-2009 3:40pm

These are seperate dwellings- it wouldn't qualify.

She will have to register with the PRTB and can deduct expenses from her rental income

Rent a room relief Q

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