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Tax on renting

  • 16-06-2014 8:57pm
    #1
    Murphj7
    Registered Users, Registered Users 2 Posts: 194 ✭✭


    Hello there. I am thinking of buying a property where I am from. So my mortgage would be 400 euro Im renting for 500. How does the tax be worked out in my paye? I useless at this so apologies if it sounds stupid


Comments

  • #2
    mozattack
    Registered Users, Registered Users 2 Posts: 1,908 ✭✭✭mozattack


    A buy to let... ? Information isn't clear from the above.


  • #3
    Grolschevik
    Registered Users, Registered Users 2 Posts: 3,472 ✭✭✭Grolschevik


    Do you mean you want to buy a place and rent it out? Your mortgage will be €400 a month and your expected rental income will be €500?

    All rental income (not just what you might consider to be "profit") is added to your PAYE income and taxed accordingly. Possibly at the higher rate depending on your circumstances. If you think that the €400 mortgage payment is a fully allowable expense, you're wrong.

    You should ask a professional about the details of what sort of expenses are allowable, but it's not the case that you'll only be taxed on what you might think of as your "profit" (ie the difference between mortgage payment and rent).

    Plenty of threads in Accommodation and Property about this.


  • #4
    atrick
    Banned (with Prison Access) Posts: 7 ✭atrick


    Murphj7 wrote: »
    Hello there. I am thinking of buying a property where I am from. So my mortgage would be 400 euro Im renting for 500. How does the tax be worked out in my paye? I useless at this so apologies if it sounds stupid

    Dear Sir,

    You will have to register as a self employed landlord and you will be allowed to set off 75% of the interest payable together with any legitimate expenses in maintaining the property such as management fees and repairs and renewals together with any professional fees you may incur.
    Go to your local tax office and they will help you register. When your first year is up get a hard copy of form 11 from the tax office and they will help you complete it. Take a photocopy for your files and send original to Limerick - address on front of form. Then keep all invoices and receipts for expenses in a file.

    Kind regards,

    Atrick


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