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Property tax incentive

  • 02-03-2012 6:08pm
    #1
    shandsaker1982
    Closed Accounts Posts: 11 ✭


    Hi,

    I have searched taxation forum and revenue.ie but cannot get a clear understanding of tax incentives to rent mortgage. I will be a foreign investor as moving to Australia. I am currently getting interest relief at source which I will lose when I go. Also, have to pay 20% tax on rental income. My question is.

    - I have read about this 75% relief on interest and don't understand it. Some say I will get the same as I would with mortgage relief at source. Does anyone understand this and explain to my simple mind?

    - Also, any other tax savings available?

    Thanks guys appreciate your time


Comments

  • #2
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,113 ✭✭✭relax carry on


    shandsaker1982 wrote: »
    Hi,

    I have searched taxation forum and revenue.ie but cannot get a clear understanding of tax incentives to rent mortgage. I will be a foreign investor as moving to Australia. I am currently getting interest relief at source which I will lose when I go. Also, have to pay 20% tax on rental income. My question is.

    - I have read about this 75% relief on interest and don't understand it. Some say I will get the same as I would with mortgage relief at source. Does anyone understand this and explain to my simple mind?

    - Also, any other tax savings available?

    Thanks guys appreciate your time

    It works like this. Say you get 10000 euro rental income for the year, you are allowed deduct 75% of the interest you pay on your mortgage only. So if you pay 4000 Euro interest, you can deduct 3000 euro leaving 7000 to be taxed on minus other expenses like agents advertising etc. You might try reading revenues guide to rental income. As a non resident landlord you must decide if you will use an agent or have rent paid directly to you by the tenant as this will affect how you account for the tax due.

    http://www.revenue.ie/en/tax/it/leaflets/it70.html


  • #3
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    shandsaker1982 wrote: »
    Hi,

    I have searched taxation forum and revenue.ie but cannot get a clear understanding of tax incentives to rent mortgage. I will be a foreign investor as moving to Australia. I am currently getting interest relief at source which I will lose when I go. Also, have to pay 20% tax on rental income. My question is.

    - I have read about this 75% relief on interest and don't understand it. Some say I will get the same as I would with mortgage relief at source. Does anyone understand this and explain to my simple mind?

    - Also, any other tax savings available?

    Thanks guys appreciate your time
    In addition to Relax's post, it should be noted that the 75% Interest Deduction is only allowable if you are registered as a Landlord with the PRTB.


  • #4
    shandsaker1982
    Closed Accounts Posts: 11 ✭shandsaker1982


    Thanks guys,

    Dont really want to leave Ireland but like many dont really have a choice in the matter but needed to make sure we do everything above board as chances are you will be caught by dodging. They dont really make it worthwhile renting a place here to be honest. Shame really.


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