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Renting a room

  • 27-03-2010 4:38pm
    #1
    Henry42
    Registered Users, Registered Users 2 Posts: 32 ✭


    Quick question...

    I bought my own 2 bedroom apartment last year and now will be renting the spare room out.

    How does this work in terms of tax? Presumably I need to pay tax on the rental income? Will it affect my mortgage interest relief?


Comments

  • #2
    rightwingdub
    Registered Users, Registered Users 2 Posts: 725 ✭✭✭rightwingdub


    Henry42 wrote: »
    Quick question...

    I bought my own 2 bedroom apartment last year and now will be renting the spare room out.

    How does this work in terms of tax? Presumably I need to pay tax on the rental income? Will it affect my mortgage interest relief?

    I think you can rent any room(s) up to 10k a year tax free, isn't there a claw back on stamp duty though if you rent the room within the first two years of purchase.

    I'd say the government will eventually get rid of the 10k a year rent a room tax free, might happen in this years budget.


  • #3
    makeorbrake
    Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    rightwingdub wrote: »
    I'd say the government will eventually get rid of the 10k a year rent a room tax free, might happen in this years budget.
    I don't think they should. Does it not encourage greater population density, more efficient usage of housing stock and help people who need the extra income to shoulder the burden of mortgage debt. I know in my own case it has been a godsend and over the last 4 years, its brought back in 20% of the capital outlay for the house.
    Having said that, the more secure my home becomes, the less likely I would be to rent-a-room - and i think you will find this is the general consensus. Sharing your own home has its downsides so there is a trade off. What this also proves is that house owners who participate are not likely to become millionaires out of it - nor are they looking to do so through this scheme...

    So why get rid of it....?


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