tax for rent earned on your loan apartment

gvgdhar

My question may look a bit odd.
I am on a rented apartment and planning to buy one myself. But I wont be able to move into the new one immediately, but after a year or two, and planning to rent it out. Can somebody suggest if I have to pay tax on the full rental income like anybody else or can I deduct the rent I am paying and pay the tax on remaining amount, if any.

Thanks

dogsears

gvgdhar wrote: »

My question may look a bit odd.
I am on a rented apartment and planning to buy one myself. But I wont be able to move into the new one immediately, but after a year or two, and planning to rent it out. Can somebody suggest if I have to pay tax on the full rental income like anybody else or can I deduct the rent I am paying and pay the tax on remaining amount, if any.

Thanks

You pay tax on the full rental income. You can't deduct rent you are paying on a different place.

Fol20

dogsears wrote: »

You pay tax on the full rental income. You can't deduct rent you are paying on a different place.

You pay tax on total net rental income( gross rent minus expenses). Btw expenses do not include renting another place.

dominicbrooks

Pay tax on rent received, no relief for paying rent.

dominicbrooks

Pay tax on rent received, no relief for paying rent.

gvgdhar

Thank you all.
I think it it is more than clear that the rent earned is taxed irrespective of your status. If I may be allowed to say - a blind rule. On one hand they give allowance of up to 10k for renting a room in your house (which is a real income) and no benefit for rent swap:(

Fol20

They are completely different. With rent a room scheme, the landlord ie the home owner has to pay for all of the utility bills and any costs to fix the place(these are non deductable tax expenses. While a standard let property, the landlord doesnt live there,does not pay for the utility bills,claims expenses.