Tax on Renting House

Lemlin

Looking at renting a house I bought three years ago. The rent is only going to cover 60% of the actual mortgage so I'll be covering the other 40% from my own pocket.

I'm wondering though how do I declare the rent or what way does that work?
Also, I'm getting mortgage interest relief as a first time buyer. Will I lose this because I am now renting?

I've also spent money on the house (e.g. insulation grant to cavity bead walls). Can this cost be offset against tax?

Any help would be greatly appreciated.

dbran

Hi

The rental income will be declared on your personal tax return.

You will loose the mortgage interest relief but 75% of the mortgage interest will be allowed as a deduction against rental income.

Re the renovation expenditure, it would probably not be allowable as a deduction against rental income but could be claimed as a deduction against any gain on the sale of the property.

Kind Regards


Dbran

Lemlin

dbran wrote: »

Hi

The rental income will be declared on your personal tax return.

You will loose the mortgage interest relief but 75% of the mortgage interest will be allowed as a deduction against rental income.

Re the renovation expenditure, it would probably not be allowable as a deduction against rental income but could be claimed as a deduction against any gain on the sale of the property.

Kind Regards


Dbran

I don't do a personal tax return though as I am a PAYE worker. So how do I report the rent back to the revenue?
Have I to start doing a personal tax return?

seco

You will also have to register tenancy with PRTB (form downloadable from their website) in order to qualify for mortgage interest relief.

dbran

Hi

You will need to either complete a Form 12 and file it with revenue in October or seek professional advise.

Kind Regards


dbran

Lemlin wrote: »

I don't do a personal tax return though as I am a PAYE worker. So how do I report the rent back to the revenue?
Have I to start doing a personal tax return?