Quick question on rental income

ElKavo

Hi Guys,

I'm a bit unsure as to the ins and outs of this. I have got different answers from different people. I am going to rent a property it is my only property and was our family home. Are we liable to pay tax on the income if it is below 10k PA? As I say it is our only property. on the revenue website it says

"Where an individual lets a room (or rooms) in his or her sole or main residence as residential accommodation, the income may be exempt from income tax where the aggregate of the gross rents and any sums for meals or other services supplied in connection with the letting is below a certain threshold, (€10,000 for the tax year 2010 & 2011). "

This is under the rent a room relief but as it is our only property does this apply? I'll ring revenue to be sure but if anyone has a definitive answer that would be great.

punisher5112

That only applies if you live there also.

Otherwise its simply classed as a business even though you could be losing money.

You must register with revenue and also prtb.

Hope that helps.

ElKavo

Yeah, I spoke to revenue, my god their delightful. Looks like I will be loosing 20% + usc + prsi what a stupid system..... Grrrrrrrr :mad::mad:

relax carry on

ElKavo wrote: »

Yeah, I spoke to revenue, my god their delightful. Looks like I will be loosing 20% + usc + prsi what a stupid system..... Grrrrrrrr :mad::mad:

Why is it a stupid system? You are about to rent out your property and receive income for it. That income, depending on your allowable expenses for offset may leave you with a tax liability.

Mrs OBumble

ElKavo wrote: »

Yeah, I spoke to revenue, my god their delightful. Looks like I will be loosing 20% + usc + prsi what a stupid system..... Grrrrrrrr :mad::mad:

You're being taxed on business income, like any other business person. So it was your faimily home - it's not any more, so what's the problem with that?

But I gotta ask - what other income do you have? If it's above 35k per year, then you will be taxed at 42% + USC + PRSI on your rental income less allowable expenses.

Eldarion

You know if you stay there a number of nights during the week then rent out a spare room or two, unless it exceeds 10k PA then you're not tax liable.

I dunno how the tax man knows where you're spending your nights though...

That being said you won't be able to charge anywhere near as much rent as you would if you rented out the house as a whole. Depending on the area you could be looking at a difference of 1.5k per month for the house versus 350 per month for a room. You might come out ahead even with the tax.

ElKavo

relax carry on wrote: »

Why is it a stupid system? You are about to rent out your property and receive income for it. That income, depending on your allowable expenses for offset may leave you with a tax liability.

The idea of "don't feed the trolls" comes to mind...

No, I say its a stupid system because, should I stay in a house that doesn't suit, Id get tax relief on my mortgage. Now that I want to make a move to a better area with better prospects and less of a commute I'm going to be hammered! I'll get max of €700 pm in rent. my mortgage is 5 odd Ill be paying 1k for the rental of a new property. I'll get no relief on the new property rent and I'll be charged the guts of 30% tax on the 700 that I will receive in rental income - expenses. Plus I'll loose any relief on the mortgage interest (trs) too.

Don't think it really needs any further explanation.

The_Morrigan

ElKavo wrote: »

The idea of "don't feed the trolls" comes to mind...

No, I say its a stupid system because, should I stay in a house that doesn't suit, Id get tax relief on my mortgage. Now that I want to make a move to a better area with better prospects and less of a commute I'm going to be hammered! I'll get max of €700 pm in rent. my mortgage is 5 odd Ill be paying 1k for the rental of a new property. I'll get no relief on the new property rent and I'll be charged the guts of 30% tax on the 700 that I will receive in rental income - expenses. Plus I'll loose any relief on the mortgage interest (trs) too.

Don't think it really needs any further explanation.

It's not the revenues fault that your house is no longer fit for purpose. You are the one making the move, they are not forcing you.

Borderfox

Mrs OBumble wrote: »

You're being taxed on business income, like any other business person. So it was your faimily home - it's not any more, so what's the problem with that?

But I gotta ask - what other income do you have? If it's above 35k per year, then you will be taxed at 42% + USC + PRSI on your rental income less allowable expenses.

Unlike any other business you can only claim back 75% of mortgage interest in relief. Big thanks to the government for all the help in running their social housing experiment

Eldarion

ElKavo wrote: »

The idea of "don't feed the trolls" comes to mind...

No, I say its a stupid system because, should I stay in a house that doesn't suit, Id get tax relief on my mortgage. Now that I want to make a move to a better area with better prospects and less of a commute I'm going to be hammered! I'll get max of €700 pm in rent. my mortgage is 5 odd Ill be paying 1k for the rental of a new property. I'll get no relief on the new property rent and I'll be charged the guts of 30% tax on the 700 that I will receive in rental income - expenses. Plus I'll loose any relief on the mortgage interest (trs) too.

Don't think it really needs any further explanation.

He's not trolling. Despite all you've said his point is still completely valid. Income is income, it's liable for tax. That being said a lot of the rental expenses can be offset against that tax.

ElKavo

It would seem that I will have a fair bit of expenses in setting the house up for the rental. So hopefully I will be able to reduce my tax liability as much as possible. I will also be using a management company so Ill be able to claim that back too... Anyone know a good cheap accountant?

ElKavo

Borderfox wrote: »

Unlike any other business you can only claim back 75% of mortgage interest in relief. Big thanks to the government for all the help in running their social housing experiment

Mortgage interest is tiny. I was smart enough to recognize that a .95% tracker was the smart move when taking out the mortgage.:cool: but every little helps... wait hope I don't infringe on a copyright there.

Baby01032012

Don't forget pre letting expenses are not allowable deduction for tax purposes.

riclad

IF you , lived in the house,
you can earn up to 10k,
tax free , its called rent a room scheme.
YOU can claim accountant fees,agent fees, insurance ,
maintenance,other expenses
cost of new cooker,fridge as expenses against tax .
eg buy fridge, claim tax credits over an 8 year period.
say fridge is 800 , you get 100 euro tax credits per year.

MAKE sure you register with the PRTB before you send in a tax return.
Cost 200 euros.

The tax on landlord s makes no sense to me in that ,
you could be getting 500 rent, mortgage is 800 per month,
and you could be still taxed on a VIRTUAL ,non existant
profit ,
cos for example,you are paying a low interest on the loan.
eg most of the 800 is capital repayments.
FOR certain landlord s .
eg you cant claim tax credits on the capital part of your mortgage.
SO in the taxmans view ,you are making a profit .
which must be taxed.


profit should be taken AS income after all expenses ,
including the mortgage payments on the rental property.

ElKavo

Baby01032012 wrote: »

Don't forget pre letting expenses are not allowable deduction for tax purposes.

Did not know that. So I have to wait until the property is let then put the stuff into it? Sorry that doesn't make much sense, So If I kit the house out with pots pans plates cutlery appliances etd before the tenant moves in its my tough and I can't claim anything back on that?

Thanks

ElKavo

riclad wrote: »

IF you , lived in the house,
you can earn up to 10k,
tax free , its called rent a room scheme.
YOU can claim accountant fees,agent fees, insurance ,
maintenance,other expenses
cost of new cooker,fridge as expenses against tax .
eg buy fridge, claim tax credits over an 8 year period.
say fridge is 800 , you get 100 euro tax credits per year.

MAKE sure you register with the PRTB before you send in a tax return.
Cost 200 euros.

Thanks, The agent is to do all the registering stuff and contracts. Guess thats why I'm paying them.

Mrs OBumble

ElKavo wrote: »

No, I say its a stupid system because, should I stay in a house that doesn't suit, Id get tax relief on my mortgage. Now that I want to make a move to a better area with better prospects and less of a commute I'm going to be hammered! I'll get max of €700 pm in rent. my mortgage is 5 odd Ill be paying 1k for the rental of a new property. I'll get no relief on the new property rent and I'll be charged the guts of 30% tax on the 700 that I will receive in rental income - expenses. Plus I'll loose any relief on the mortgage interest (trs) too.

Don't think it really needs any further explanation.

Oh, I agree that this side of it is stupid (assuming you cannot sell due to negative equity - otherwise that's the obvious solution).

But the issue is that government policy is designed to encourage you to stay in the first house you buy, rather than facilitate changes as your family and employment needs change.

IMHO, good policy in this are would allow you to claim a portion of your own rental payment as a deductable expense against your rental income, and it would remove the "first home owner" relieft becasue their nett effect is reduced labour market mobility.

But it's not Revenue's fault that this isn't the law at the moment.

Time to start lobbying your TD.

Baby01032012

ElKavo wrote: »

Did not know that. So I have to wait until the property is let then put the stuff into it? Sorry that doesn't make much sense, So If I kit the house out with pots pans plates cutlery appliances etd before the tenant moves in its my tough and I can't claim anything back on that?

Thanks

Pre letting expenses not allowable. Appliances are capital items which you can claim capital allowances on,basically writing cost off against income over life of appliance. Why would you buy plates pots pans etc. these are not a necessity of renting.

ElKavo

Mrs OBumble wrote: »

Oh, I agree that this side of it is stupid (assuming you cannot sell due to negative equity - otherwise that's the obvious solution).

But the issue is that government policy is designed to encourage you to stay in the first house you buy, rather than facilitate changes as your family and employment needs change.

IMHO, good policy in this are would allow you to claim a portion of your own rental payment as a deductable expense against your rental income, and it would remove the "first home owner" relieft becasue their nett effect is reduced labour market mobility.

But it's not Revenue's fault that this isn't the law at the moment.

Time to start lobbying your TD.

Negative equity is quite large so sale isn't a real option. I aggree complete on your point and it's a shame that the policy makers don't seem to live in the real world. for now it looks like I'll have to reduce my liability as much as possible.

thanks

relax carry on

ElKavo wrote: »

The idea of "don't feed the trolls" comes to mind...

No, I say its a stupid system because, should I stay in a house that doesn't suit, Id get tax relief on my mortgage. Now that I want to make a move to a better area with better prospects and less of a commute I'm going to be hammered! I'll get max of €700 pm in rent. my mortgage is 5 odd Ill be paying 1k for the rental of a new property. I'll get no relief on the new property rent and I'll be charged the guts of 30% tax on the 700 that I will receive in rental income - expenses. Plus I'll loose any relief on the mortgage interest (trs) too.

Don't think it really needs any further explanation.

I get that you are upset that you feel that you must become a landlord. However in becoming a landlord you are operating a business and are subject to the taxation rules for rental income.
If you feel that the system should be altered to cater for people in your position then it's time to start lobbying politicians.

By the way I do not appreciate the troll comment. I asked a question and provided you a brief outline of the taxation of rental income. Subject to new rules being introduced the below link will assit you.
http://www.revenue.ie/en/tax/it/leaflets/it70.html

riclad

HE probably means , repairs ,insurance etc
payments due before you get your first tenant.
BY all means buy cups ,plates ,etc, in may, rent out in june you should still get tax credits.
for something big, eg 400 euro fridge,
i,d buy it on the last day in may,
PAY for it on june 1st .
SAY you rent out june 1st,
you,ll only be able to claim ,for 6 months ,june to december.
INSURANCE cost,
as you only had a tenant for 6 months of the tax year.

GET an accountant ,
and look on revenue.ie landlord tax allowances .
You have to keep all documents ,and reciepts,for 6 years,
in respect of the rental property,

I don,t think the tax man expects you to rent out a empty house on june 1st ,
and buy all fixtures,fittings,furniture on june 2nd.
if you bought a fridge 3 months ago ,
i doubt if you can claim tax credits for it.
i could be wrong.

There.s alot of landlord s paying tax ,
on houses in negative equity,
even though the profit they make is close to zero euros.
MAYBE buy new cups,pots, plates etc just before you get the 1st
tenant .
ie 1 week before .
I,M not sure how strict they are on that issue.

http://www.irishlandlord.com
lots of info here.

ElKavo

relax carry on wrote: »

I get that you are upset that you feel that you must become a landlord. However in becoming a landlord you are operating a business and are subject to the taxation rules for rental income.
If you feel that the system should be altered to cater for people in your position then it's time to start lobbying politicians.

By the way I do not appreciate the troll comment. I asked a question and provided you a brief outline of the taxation of rental income. Subject to new rules being introduced the below link will assit you.
http://www.revenue.ie/en/tax/it/leaflets/it70.html

It was meant toung in cheek. Im sure your lovely...

Thanks for the helpfull feedback.:)

ElKavo

riclad wrote: »

http://www.irishlandlord.com
lots of info here.

Excellent site, thanks. Does anyone know if there is a definitive list as to what you have to supply in the house?

Thanks

Thargor

riclad wrote: »

IF you , lived in the house,
you can earn up to 10k,
tax free , its called rent a room scheme.
YOU can claim accountant fees,agent fees, insurance ,
maintenance,other expenses
cost of new cooker,fridge as expenses against tax .
eg buy fridge, claim tax credits over an 8 year period.
say fridge is 800 , you get 100 euro tax credits per year.

MAKE sure you register with the PRTB before you send in a tax return.
Cost 200 euros.

The tax on landlord s makes no sense to me in that ,
you could be getting 500 rent, mortgage is 800 per month,
and you could be still taxed on a VIRTUAL ,non existant
profit ,
cos for example,you are paying a low interest on the loan.
eg most of the 800 is capital repayments.
FOR certain landlord s .
eg you cant claim tax credits on the capital part of your mortgage.
SO in the taxmans view ,you are making a profit .
which must be taxed.


profit should be taken AS income after all expenses ,
including the mortgage payments on the rental property.

Hi, see the bit in bold, is that against any tax? So if Im renting rooms in my house and working I could offset those expenses against my PAYE on my real job or is that wishful thinking? Thanks.

ElKavo

OK I've done up a rough guide as to what I think are expenses that I can claim back against tax on income. Can anyone in the know let me know if these are realistic and actually claimable?

mortgage interest @75% total yearly = 1134
Management Fees = 600 @50€; pm
Insurance Premium = 400 est
Legal fees = 100
Prtb reg fee = 200
Mortgage PP = 250 est
Cost of repairs and maint @12.5% pa = Unknown
Property Tax = 90

Total = 2147

Rental income = 8400

Tax @ 30% on rental income = 2520

Actual liability for tax on rental income = 373 ?

Are my figures correct here or should it be

Rental Income = 8400
Minus total expenses = 2147

actual income = 6253

Tax @ 30 of rental income = 1845.9?

Any one who is doing these returns I would appreciate it if you could tell me which one is correct?

Thanks

Blured

ElKavo wrote: »

OK I've done up a rough guide as to what I think are expenses that I can claim back against tax on income. Can anyone in the know let me know if these are realistic and actually claimable?

mortgage interest @75% total yearly = 1134
Management Fees = 600 @50€; pm
Insurance Premium = 400 est
Legal fees = 100
Prtb reg fee = 200
Mortgage PP = 250 est
Cost of repairs and maint @12.5% pa = Unknown
Property Tax = 90

Total = 2147

Rental income = 8400

Tax @ 30% on rental income = 2520

Actual liability for tax on rental income = 373 ?

Are my figures correct here or should it be

Rental Income = 8400
Minus total expenses = 2147

actual income = 6253

Tax @ 30 of rental income = 1845.9?

Any one who is doing these returns I would appreciate it if you could tell me which one is correct?

Thanks

Its the second calc - Tax is done on rental profit, not rental income.

Your PRTB fee looks too high and Im pretty sure Property Tax isnt an allowable expense. Also - would your tax not be at the higher rate?

djimi

Baby01032012 wrote: »

Why would you buy plates pots pans etc. these are not a necessity of renting.

I agree with this. As a tenant I dont want someone elses cutlery, crockery, pots and pans etc, and if they were there I wouldnt use them. Save yourself some money and dont bother providing this sort of stuff; its not expensive for the tenant to buy for themselves and most will be happy to Id imagine.

sunnysoutheast

ElKavo wrote: »

OK I've done up a rough guide as to what I think are expenses that I can claim back against tax on income. Can anyone in the know let me know if these are realistic and actually claimable?

mortgage interest @75% total yearly = 1134
Management Fees = 600 @50€; pm
Insurance Premium = 400 est
Legal fees = 100
Prtb reg fee = 200
Mortgage PP = 250 est
Cost of repairs and maint @12.5% pa = Unknown
Property Tax = 90

Total = 2147

Rental income = 8400

Tax @ 30% on rental income = 2520

Actual liability for tax on rental income = 373 ?

Are my figures correct here or should it be

Rental Income = 8400
Minus total expenses = 2147

actual income = 6253

Tax @ 30 of rental income = 1845.9?

Any one who is doing these returns I would appreciate it if you could tell me which one is correct?

Thanks

It's basically the second one, but more complex. Taxable income is gross rent minus allowable expenses and capital allowances.

LPT is not yet confirmed claimable (although many people do).
Repair expenses are fully claimable in the tax year of their occurence.
Capital allowances are available over 8 years, even on items already in the property when the rental starts.

ElKavo

Blured wrote: »

Its the second calc - Tax is done on rental profit, not rental income.

Your PRTB fee looks too high and Im pretty sure Property Tax isnt an allowable expense. Also - would your tax not be at the higher rate?

Thanks for reply, Looks For some reason I thought it was 200... It should be 90 per tenancy.

On the IPOA website it says that the Property Tax is deductible from rental income. Or has this not come into place yet?

Don't think this will push me into the higher rate of tax or at least not all of it into the higher rate.

Either way I'm close enough to the actual mortgage on the property PM that I shouldn't be all too much in the red when renting this property. Maybe 2 - 500€ pa.

Which I can live with.

ElKavo

sunnysoutheast wrote: »

Capital allowances are available over 8 years, even on items already in the property when the rental starts.

Does the capital spend not have to occur within the tenancy?

I.E. I have a 2.5k wardrobe in the house. Installed before we moved in 7 years ago. Can I claim 1 year of 2.5k @12.5% or 8 years... Same for appliances?

Thanks

Blured

ElKavo wrote: »

On the IPOA website it says that the Property Tax is deductible from rental income. Or has this not come into place yet?

http://www.revenue.ie/en/tax/lpt/pqs/week-ending-20130203.html

Revenue wrote:

The Thornhill Group recommended that the Local Property Tax paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. This is not provided for in the Finance (Local Property Tax) Act 2012; it is the intention of the Government to introduce such a provision on a phased basis but the manner in which this will happen has not been decided. Such change would be provided for by primary legislation.

So looks like the intention is that it will be a deductible but that it has not yet been provided for in legislation

djimi

PRTB registration costs €90, not €200.

Jasper79

ElKavo wrote: »

Does the capital spend not have to occur within the tenancy?

I.E. I have a 2.5k wardrobe in the house. Installed before we moved in 7 years ago. Can I claim 1 year of 2.5k @12.5% or 8 years... Same for appliances?

Thanks

My understanding of this is that as the wardrobe is 7 years old at time of letting you can claim 1 year wear and tear ( 8 years total for capital allowances) at 12.5%, so 312.5 and then wardrobe is fully written off for accounting purposes... open to correction though., could be wrong.

ElKavo

Can you claim for a garden shed? There doesn't seem to be a list of whats an acceptable expense and what isn't anywhere.

Can you claim for kettle / toaster / microwave? You would think with the amount of rented property's our there that there should be a minimum requirement. From what I've seen there isn't one, I stand to be corrected ( hopefully)

The_Morrigan

OP you really need to seek professional advice in relation to this, you need to sit down with an accountant for a consultation on how you can prepare your taxes. If anyone here is incorrect in their advice or you misinterpret it you'll end up in hot water with Revenue.

ElKavo

The_Morrigan wrote: »

OP you really need to seek professional advice in relation to this, you need to sit down with an accountant for a consultation on how you can prepare your taxes. If anyone here is incorrect in their advice or you misinterpret it you'll end up in hot water with Revenue.

Yes I know I have to sit down with an accountant on this before making a return... Just trying to gauge the water as much as possible. It isnt too bad when you have a rough idea as to our exposure on the tax side.

Thanks

I wont need to do a return on the property till next year anyhow... I just need to know what to keep. I'm guessing everything!!

cookie1977

The_Morrigan wrote: »

OP you really need to seek professional advice in relation to this, you need to sit down with an accountant for a consultation on how you can prepare your taxes. If anyone here is incorrect in their advice or you misinterpret it you'll end up in hot water with Revenue.

Cannot agree more. Some money spent on proper financial advice will be money well spent! This is a business and you have an asset to protect as well as your name and financial standing.

sunnysoutheast

cookie1977 wrote: »

Cannot agree more. Some money spent on proper financial advice will be money well spent! This is a business and you have an asset to protect as well as your name and financial standing.

second this...plus it's deductible.

The capital allowances are available against fixtures and fittings, there is no definitive definition of this but a working assumption is that, if it can in theory, be removed and reused elsewhere it is available for depreciation. So carpets are OK, tiles aren't. Freestanding baths are OK, built-ins aren't.

In terms of pre-existing items again a working assumption is that the item can be valued according to how far through its 8 year accounting lifespan it is, and then the residual value can be depreciated over 8 years. That is the way I was advised to approach it in any case.

It would be good to get a definitive view, but I don't know of one.

ElKavo

sunnysoutheast wrote: »

second this...plus it's deductible.


It would be good to get a definitive view, but I don't know of one.

Thanks, this is the problem it all seems open to interpretation, So a good accountant could get your bill right down. But if they think they are smarter than they actually are you could be knackered if their interpretation and the revenues interpretation don't match. Or is it a case that the accountant would be held negligible?

It just seems to be a mine field but obviously a good accountant is the place to go. Is there any landlord specific accountants or will any old number jockey do the trick?

Thanks

sunnysoutheast

ElKavo wrote: »

Thanks, this is the problem it all seems open to interpretation, So a good accountant could get your bill right down. But if they think they are smarter than they actually are you could be knackered if their interpretation and the revenues interpretation don't match. Or is it a case that the accountant would be held negligible?

It just seems to be a mine field but obviously a good accountant is the place to go. Is there any landlord specific accountants or will any old number jockey do the trick?

Thanks

While I don't want to point people in the direction of other forums there are detailed discussions regarding taxation of rental income etc., including regular posts from accountants, on other sites.

As long as I (and our accountant!) can justify my position to Revenue I am comfortable with things. I know of people who are much more aggressive than I am in what they claim, but that's up to them.

quietsailor

Here's some info about the basic requirements in law that have to be in a house:
Residential Tenancies Act the actual law about tenancies
Housing Standards Act - the minimum standard the house should have
Housing standards simplified A government document explainig the min. standards expected in rented acomodation, a bit easier to digest than the SI above

ElKavo

sunnysoutheast wrote: »

While I don't want to point people in the direction of other forums there are detailed discussions regarding taxation of rental income etc., including regular posts from accountants, on other sites.

As long as I (and our accountant!) can justify my position to Revenue I am comfortable with things. I know of people who are much more aggressive than I am in what they claim, but that's up to them.

Thanks for the reply... Yes I think I'll need an aggressive accountant i'm talking max payne aggresssion!

ElKavo

quietsailor wrote: »

Here's some info about the basic requirements in law that have to be in a house:
Residential Tenancies Act the actual law about tenancies
Housing Standards Act - the minimum standard the house should have
Housing standards simplified A government document explainig the min. standards expected in rented acomodation, a bit easier to digest than the SI above

Thanks for your reply the last doc is easier to go through alright. Its good to know what is required. My letting agent seems to have different ideas as to what is required.

riclad

You can claim as a landlord ,
for repairs, items, bought for the property,
eg furniture,fridge, insurance,service charges,
accountants,agents fees ,advertising.75 per cent loan interest, prtb fee.
etc
some landlords don,t claim for everything,
cos if you have a large loan,
75 per cent of interest,
may be more than the rental income,

ie in revenues eyes your profit is zero.



SO in that case no point in claiming for 50 euro
for new set of plates ,cutlery.
AND holding on to dozens of small reciepts

IF your tax bill is very low ,and you are well off ,
you may not be bothered holding onto
every single receipt .

IN 10 years time if your interest payment decreases,
tax rises ,
you,ll need to claim for every expense.

Theres, no requirement to claim for every single expense,

but you have to fill in a tax return every year,
whether you make a profit is up to the revenue to
calculate.


AN agressive accountant cant make up expenses,
he can only work with the documents ,and
reciepts which you give to him.
at the time he sends in the tax return.

IF I was a landlord ,
paying,
say 3k tax,

i,d employ ,an accountant, agent,
have a diy person pro ready to carry out repairs.
AS you can claim for these expense,s against rental income.

THERES a limited amount of things an accountant can claim for
in respect to landlords expenses.

I think you can claim for any item that a tenant would need ,
eg plates, cooker, fridge,
microwave,
cutlery,
heaters,
furniture, beds, sheets, sofa,pillows.
SAY you buy a sofa for 200 ,
claim for it ,divide 200x 8,
you get tax allowance of 25 euro per year on that item.
You need to hold on to reciept when you buy any item for the rental unit.
HOLD onto all documents,for 6 years .
especially large items you claim for eg fridge ,tv.

I don,t think you could go out and buy a laptop,
or a 3d tv and claim for that ,
as tenants don,t require those items to live in a property.
SOME landlords put in tvs,
nd say,
if you want to get,sky tv,
cable tv, installed thats up to you.

I do,nt know how it works ,re price limits on items,
could i buy a 500 euro sofa,
when theres plenty of standard sofa,s on sale for 200 euros.

marathonic

riclad wrote: »

You can claim as a landlord ,
for repairs, items, bought for the property,
eg furniture,fridge, insurance,service charges,
accountants,agents fees ,advertising.75 per cent loan interest, prtb fee.
etc
some landlords don,t claim for everything,
cos if you have a large loan,
75 per cent of interest,
may be more than the rental income,

Claim for every expense, even if the mortgage interest is high enough to offset all rental income. The more losses you can carry forward, the longer it will be before you are eventually liable for income tax.

riclad

WELL you should claim for larger items,like fridges,
beds,furniture,microwave,
as the credits are taken over an 8 year period .
Even if this year your tax is zero ,because you have a large mortgage.
I,M NOT sure if its worth claiming for things, like
towels,plates, 30 euro,10 euro items
if your tax on rental income this year is zero.

I know a landlord ,loan is 130k plus,
rent is 500 per month,
this person probably won,t make a taxable profit
for at least 5 years from now.
House was bought in 2007.

ElKavo

riclad wrote: »

WELL you should claim for larger items,like fridges,
beds,furniture,microwave,
as the credits are taken over an 8 year period .
Even if this year your tax is zero ,because you have a large mortgage.
I,M NOT sure if its worth claiming for things, like
towels,plates, 30 euro,10 euro items
if your tax on rental income this year is zero.

I know a landlord ,loan is 130k plus,
rent is 500 per month,
this person probably won,t make a taxable profit
for at least 5 years from now.
House was bought in 2007.

I think I'll have to claim for everything I have. I have asked my mortgage provider for a statement on my mortgage from last year to gauge the interest relief i can claim back. My mortgage is on 190k and the rent max will be 700 pm. At a guess Id say I'm looking at a maximum relief of about 2.5k pa. My house was also bought in 2007. with the relief on interest and other expenses I have roughly calculated I would guestimate that I'm looking at a 900 tax bill.

If I cant claim as much back as possible then I'm looking at a bill which I really don't want to have.

***Rant begins***

I have also sent letters to my local td's and the minister for finance as I had no Idea this was the case. My mortgage payments are tiny by comparison to some out there and It really just reeks of inequality. I can see thousands of familys being trapped in un suitable homes whom are doing their best to pay their way and not defaulting on payments. We have always done everything above board and it seems that the more honest you are with the system the more you get screwed!

***Rant Ends***

The_Morrigan

ElKavo wrote: »

I think I'll have to claim for everything I have. I have asked my mortgage provider for a statement on my mortgage from last year to gauge the interest relief i can claim back. My mortgage is on 190k and the rent max will be 700 pm. At a guess Id say I'm looking at a maximum relief of about 2.5k pa. My house was also bought in 2007. with the relief on interest and other expenses I have roughly calculated I would guestimate that I'm looking at a 900 tax bill.

If I cant claim as much back as possible then I'm looking at a bill which I really don't want to have.

***Rant begins***

I have also sent letters to my local td's and the minister for finance as I had no Idea this was the case. My mortgage payments are tiny by comparison to some out there and It really just reeks of inequality. I can see thousands of familys being trapped in un suitable homes whom are doing their best to pay their way and not defaulting on payments. We have always done everything above board and it seems that the more honest you are with the system the more you get screwed!

***Rant Ends***

The bolded bit....is that referring to your TRS?

ElKavo

The_Morrigan wrote: »

The bolded bit....is that referring to your TRS?

No, That is the 75% that I can claim back against tax paid on the rental income. Sorry if that was not clear.

The_Morrigan

ElKavo wrote: »

No, That is the 75% that I can claim back against tax paid on the rental income. Sorry if that was not clear.

Was curious as to the relevance of the purchase in 2007 and interest relief - usually that ends up being TRS.

Thanks!

ElKavo

The_Morrigan wrote: »

Was curious as to the relevance of the purchase in 2007 and interest relief - usually that ends up being TRS.

Thanks!

No I'll loose any trs I have left, only 6 months I think and by the time I rent it out it'll be 2 -3 months, The extra interest will obviously go toward the reduced tax bill( well 75% of it).