Planning on renting house

scary

Hi all

I plan to rent my primary residence and move in with my girlfriend, I am in the higher tax bracket and do not get TRS, I plan to rent the property for €700 a month, what kind of tax would I be looking at paying and do I declare it at the end of the year or every month.
Thanks for any responses.

AugustusMinimus

You'll be paying overall at 52%. (Tax: 41%, PRSI: 4%, USC: 7%)

You'll be able to claim 75% of the mortgage interest as a deduction from your rent.

You'll have to register with the PRTB if you want to claim the interest. PRTB costs are also deductible.

Other stuff, like repairs, accounting, bank fees (if you lodged the rent into a new account) and such will also be deductible. You can claim capital allowances on new furniture or appliances which means you can claim 1/8 of the their cost each year for 8 years.


You'll have to declare your rent once per year. The deadline for 2010 will be 31 October 2011. 2011 will be 31 October 2012.

I believe you can return rental income on PAYE anytime but you'll have to check this out. Otherwise you might have to return a Form 12 by 31 October each year.

scary

Would I be correct in assuming that if 75% of the interest on my mortgage is greater than the €8400 rent for the year I would be liable for no tax?

AugustusMinimus wrote: »

You'll be paying overall at 52%. (Tax: 41%, PRSI: 4%, USC: 7%)

You'll be able to claim 75% of the mortgage interest as a deduction from your rent.

You'll have to register with the PRTB if you want to claim the interest. PRTB costs are also deductible.

Other stuff, like repairs, accounting, bank fees (if you lodged the rent into a new account) and such will also be deductible. You can claim capital allowances on new furniture or appliances which means you can claim 1/8 of the their cost each year for 8 years.


You'll have to declare your rent once per year. The deadline for 2010 will be 31 October 2011. 2011 will be 31 October 2012.

I believe you can return rental income on PAYE anytime but you'll have to check this out. Otherwise you might have to return a Form 12 by 31 October each year.

AugustusMinimus

scary wrote: »

Would I be correct in assuming that if 75% of the interest on my mortgage is greater than the €8400 rent for the year I would be liable for no tax?

Correct.

And the loss can be carried forward to the following year as a deduction. So say if you make a €500 loss in 2010 and a €1200 profit in 2011, you can reduce your 2011 taxable profit to €700 Euro.