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RENT A ROOM SCHEME TO HELP PAY MORTGAE

  • 12-06-2012 11:20pm
    #1
    angle82
    Registered Users, Registered Users 2 Posts: 8 ✭


    Hi all

    Some advice needed! Ex husband and I own a house which neither of us live in,it is rented and it pays 60% of the mortgage. We get TRS as we were first time buyers, my question and concern is the fact the house is rented revenue will see the rent money as an income and to avoid this, there is rent a room scheme not 100% certain of this either, just wondering does any one have experience with this ,is it worth while and how does one go about it?


Comments

  • #2
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    It only applies to properties that you are living in.

    I don't think you can receive TRS if you aren't living there. I think you can only get 80% relief on the interest portion and then only if registered with the PRTB.

    One hopes that the PRTB, your council, bank, insurers, etc. know that the property is rented out or you could be facing hefty bills.


  • #3
    MBateson
    Registered Users, Registered Users 2 Posts: 169 ✭✭MBateson


    Hi, it's 75% that is allowable against rental income.


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


    angle82 wrote: »
    Hi all

    Some advice needed! Ex husband and I own a house which neither of us live in,it is rented and it pays 60% of the mortgage. We get TRS as we were first time buyers, my question and concern is the fact the house is rented revenue will see the rent money as an income and to avoid this, there is rent a room scheme not 100% certain of this either, just wondering does any one have experience with this ,is it worth while and how does one go about it?

    Firstly, it sounds like you may not be tax compliant in your current set up. If you rent a property, you must inform revenue to stop your TRS. Once you register the rental with the PRTB, you can claim 75% of the mortgage interest as a deduction against the rental income when you file your yearly tax return.

    Regarding the rent a room scheme, the owner must reside in the property to claim that exemption.

    You may wish to read revenues guide to rental income, contact your local Revenue office and/or seek professional advice as Revenue are increasingly targeting undeclared rental income.

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


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