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TRS

  • 22-12-2010 9:36pm
    #1
    mainframe
    Closed Accounts Posts: 6 ✭


    I own a house with a mortgage, if I rent it out for 15 months, I will loose my TRS (is this correct)?

    In this time period I will be renting another property, however in 15 months time I will move back into my own mortgaged property, will I be able to get TRS on this property again?
    Thanks


Comments

  • #2
    Toblerone1978
    Registered Users, Registered Users 2 Posts: 684 ✭✭✭Toblerone1978


    As the house would not be your principal private residence (PPR), you would not be entitled to mortgage relief.

    However there is a capital gains tax relief allowed for PPR, whereby you sell you're PPR and it's not subject to CGT. There is a concession allowed (for CGT purposes) whereby you had to reside elsewhere due to your employment; the concession allowed is that the house will still be deemed to be your PPR for this (absent) period, provided you live in the house as your main residence both before and after this (absent) period.

    Talk to your local tax office, they may allow a similar concession in relaiton to your mortgage relief.


  • #3
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    The Capital Gains Tax provisions are completely irrelevant to this discussion, but to describe some of the statutory provisions contained in Section 604 Taxes Consolidation Act 1997 as "concessions" is wholly misleading.

    The OP is not entitled to TRS while the house is let. The interest on the loan is instead allowed as a deduction from the rents. For any interest paid after April 2009 the amount of allowable interest is restricted by 25% so that only 75% is allowed. As that 75% may be relieved from tax at the higher rate it is often a more valuable relief than TRS which is limited to 20%. Again there is nothing concessionary about this - it is the law.


  • #4
    Toblerone1978
    Registered Users, Registered Users 2 Posts: 684 ✭✭✭Toblerone1978


    Toblerone1978 wrote: »
    Talk to your local tax office, they may allow a similar concession in relaiton to your mortgage relief.
    nompere wrote: »
    The Capital Gains Tax provisions are completely irrelevant to this discussion, but to describe some of the statutory provisions contained in Section 604 Taxes Consolidation Act 1997 as "concessions" is wholly misleading.

    Nompere, I suggest you read my post before going off on a rant. While I'm aware that the concession I refer to above is allowed by s604(5) TCA1997, it's still a concession (a concession being an allowance, special consideration etc). Grant it, it's not a Revenue concession but it's still a concession (provided by tax legislation). So to say that its "wholly misleading" is wholly misleading. ;)

    I refer to it because I'm aware of a taxpayer who was allowed to retain their TRS (by their local tax office) while away from the premises for a lengthy period due to work reasons.


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