Tax on Rental Income

troops

Hi,

I'm trying to figure out exactly what tax I would pay if I rented out my house - the IT 70 guide from Revenue isn't very clear.

Is it a straight 20%? I just want a simple answer
e.g. rent = 500 per month
interest on mortgage = 200 pm

let's say for arguments sake there's no more deductable expenses

do I pay 20% of 300 to revenue???

D3PO

No. Because to start with only 75% of interest is tax deductable

so in that instance you would be paying tax on 350.

Bottom line is if you have to come on this forum re tax questions on rental your better paying an accountant to do your returns (fee for accountant also tax deductable)

troops

troops wrote: »

I just want a simple answer

:mad:

HardyEustace

troops wrote: »

:mad:

If people are good enough to reply, even if it's not what you want to hear, a simple thank you would suffice or even no reply is better than that

D3PO

troops wrote: »

:mad:

If NO isnt a simple answer I dont know what is. I coould help more but I tend not to help ungrateful so and so's

troops

D3PO wrote: »

Bottom line is if you have to come on this forum re tax questions on rental your better paying an accountant to do your returns (fee for accountant also tax deductable)

I wouldn't consider that comment helpful. Condesending alright

D3PO

troops wrote: »

I wouldn't consider that comment helpful. Condesending alright

no problems next time i will just laugh when you post about how you have been fined by revenue for filing incorrect returns. the fact is if you dont know how to file correctly you should use an accountant. if you believe thats condecending you need to look the word up in the dictionary

antoinolachtnai

The rate of tax depends on what tax bracket you are in. So it depends on your total income including your job. If you are on the higher rate, it will be taxed at the higher rate. That would be 41 percent plus the various levies.

The_Conductor

Guys- behave.

OP- with tax- there very seldom is a simple answer. If you don't hear what you want to hear- there is no need to get shirty with the people who actually take time to reply to you.

Now calm down everyone. If you can be helpful towards the OP- please post helpful information- other than that- please move on, nothing to see here.

troops

antoinolachtnai wrote: »

The rate of tax depends on what tax bracket you are in. So it depends on your total income including your job. If you are on the higher rate, it will be taxed at the higher rate. That would be 41 percent plus the various levies.

thanks man. simple answer to a simple question which i couldn't find on the revenue site. think i'll skip the accountant.

godtabh

Is there any where online that gives an example of how to calculate it?

Do you pay tax on if you make a loss on the rental income ie mortgage is €1000 rent is €750?

AmcD

The best thing to do is to look up irishlandlord.com. It gives advice and lists for first time landlords, including how to calculate tax and deductable expenses.

troops

godtabh wrote: »

Is there any where online that gives an example of how to calculate it?

Do you pay tax on if you make a loss on the rental income ie mortgage is €1000 rent is €750?

i doubt it's that easy otherwise we'd all be restructuring our mortgages to be more than our rent.

antoinolachtnai

You aren't necessarily making a loss in that case. It depends on what proportion of your mortgage payment is capital (not an expense) and interest (partially allowable for tax purposes).