Tax on rental income

Shannonsider

Hi. I know this is a property related query but I am considering buying a place to let it and I am wondering what my tax exposure is roughly. I am also considering letting our current place (which we own and is out principal private residence).

Is there any online tool where I can plug in some figures and it gives me a guide as to my possible tax liability? Failing that and with the mod's permission, say my rental income was 16k per annum for both places and I have a mortgage interest bill for 15k on both places combined, and say 2k in expenses. What might my tax bill be? Is rental income charged at the higher rate?

Shannonsider

Anybody??

Geuze

http://www.revenue.ie/en/tax/it/rental-income.html

Read this.

Geuze

Gross rental income less deductions = rental profit

Rental profit is added to your PAYE income and taxed at the normal rates.


Gross rental income

LESS allowable deductions

e.g.
75% of allowable interest
relevant capital allowances
maintenance costs
other costs (see Revenue guidelines)

EQUALS rental profits

Mr. Incognito

I'm closing this.

Buying a house to rent it and you want tax advice from Boards??

Really?

Go speak to a professional.