Sharing Accommodation - tax costs for landlord

beebaw

im thinking of sharing my house out, i have approx 3 bedrooms that i can share, i am aware of the rights associated with this but what tax will i have to pay the revenue on this. there is no mortgage on the house if this matters in this case. i propose to rent each room for €500 each p/m

Victor

If you still live there, you can avail of the Rent-a-Room scheme where you can earn up to €10,000 per year (including all bills) and pay no tax. You must declare the income. However, if you go over that figure, all of it is liable to tax.

In calculating the tax, you are allowed write off certain expenses. However, you wouldn't have many expenses if you don't have a mortgage.

Tax would be calculated as normal, so whatever your highest rate is at the moment. Note there are changes to the cut off points, PRSI and income levies this year.

Pkiernan

beebaw wrote: »

i propose to rent each room for €500 each p/m

Is €500 per month per room a realistic figure??

If you do get it your rental income will be €18000 per year. You would pay income and PRSI on this money.

You would be better off just renting 2 rooms for €400 each and staying under the €10000 limit.

ricman

Are the rooms all the same size, 500 is alot for a box room.

beebaw

yes 500 per room, they are all very large rooms with all mod cons included. also this is cheap for the area as others around the same area are approx 600p/m

athtrasna

All mod cons? Are the rooms en suite? €500 a month to share a house with the owner and at least 2 other people? I really don't think you're going to get that in the current climate.

delllat

beebaw wrote: »

yes 500 per room, they are all very large rooms with all mod cons included. also this is cheap for the area as others around the same area are approx 600p/m

which area are rooms in shared accomodation still renting for 600p/m ?


not everyone will move into a house the landlord lives in also