Rental Income

cysco

Hi

Hope I'm not duplicating previously answered questions

I am receiving €800 pm rental income (€9600 yearly = 12 months x €800)
My variable mortgage monthly repayments are €1050 (€12600 = 12 months x €1050)

Hence my income does not cover the mortgage.

I am assuming I will have to pay tax,

Can someone please tell me

1 what is my mortgage interest figure ? Is it 75% of the 12600 ?
2 is the tax rate 20%

thanks
cysco

Warper

Ask you bank what is the interest figure as 75% of this interest is allowed.

relax carry on

cysco wrote: »

Hi

Hope I'm not duplicating previously answered questions

I am receiving €800 pm rental income (€9600 yearly = 12 months x €800)
My variable mortgage monthly repayments are €1050 (€12600 = 12 months x €1050)

Hence my income does not cover the mortgage.

I am assuming I will have to pay tax,

Can someone please tell me

1 what is my mortgage interest figure ? Is it 75% of the 12600 ?
2 is the tax rate 20%

thanks
cysco

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

Its 75% of the interest so long as the tenancy was registered with the PRTB. Your bank will tell you your interest figure.
The rate of tax you pay will be determined by your other sources of income and your personal circumstances.

lbyrne121

Hi sorry for taking over the thread but I was wondering if someone could help me

I work in Northern Ireland but live in the republic and I am considering renting out my property,
Does anyone know what my rental income tax bill would be to the Republic of Ireland.

I am paid 35,000 per year, receive 8,400 in rental income?

I will be registering with the PRTB would I be entitled to tax relief of interest for mortgage?

I would really appreciate if someone could help me out with these calculations.

Thanks

NIMAN

@OP, your annual bank statement for your mortgage should give you a figure for the amount of interest you paid in the last year.....you are allowed to claim 75% of this in relief.

As for your rent not covering your mortgage, I'm sorry but thats irrelevant to Revenue, any rental income is considered taxable at your prevailing rate, minus any deductions you are allowed on it.


@lbyrne121, you probably need to chat to a tax consultant, because if you register with the PRTB and go the legal route wanting to pay tax on your rental income, then Revenue will start to look for a tax return each year from you. I am in a similar situation, I also work in NI and did have a property in RoI which I rented. I was registered and paying tax on it, but then sold it. But once I was on Revenue's system, I now have to continue to make tax returns every year, even if I owe very little or no tax.

lbyrne121

@NIMAN can you remember how your rental income tax for your property was calculated? Did you end up with a high tax bill cause you worked up north?
I would be afraid not to go the legal route and then getting caught..

NIMAN

Always best to go the legal route!

Honestly can't remember how much it cost me, think I owed €1500 one year, only ended up paying a couple of years as I sold the property. But once you are in the system, you are in.
I was also married, so our tax would likely be different than yours.

Did You Know, every NI worker who resides in the RoI is meant to file a tax return, but Revenue would normally overlook it as most people won't owe anything after they pay their tax to HMRC.

lbyrne121

@NIMAN thank you for your response, I am getting married at the end of the year. My OH works in the republic but I will work in the North was this similar to your situation? do you have to pay more tax due to this or does it cancel itself out? Not taking rental income into consideration here.

can I also ask were you allowed to take deduct expenses from your rental income even though you are paid through Northern Ireland? I,e PRTB and 75% interest relief?

exaisle

All of the posters here who aren't sure of what they're doing need to consult an accountant!

Don't rely on advice received here....it's only worth what you paid for it...