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Is it worth raising rent with tax considerations?

  • 18-02-2016 7:44pm
    #1
    Registered Users, Registered Users 2 Posts: 1,190 ✭✭✭


    My relative rents a house which doesn't cover her mortgage fully but at the time she went with the market rent and had 100/month to cover herself. 4 years on and same tenants, she has never rasied the rent as is happy to have secure tenants yet, I think it's well below the market rent by now. For every 100/ month she might raise the rent, is it worth it given the tax due? How could she calculate that? Thanks.


Comments

  • Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    The tax on €100 cannot be more than €52, so she's always going to be at least €48 ahead.

    The tax will probably be less than €52 but it all depends on her particular circumstances.


  • Closed Accounts Posts: 5,482 ✭✭✭Hollister11


    nompere wrote: »
    The tax on €100 cannot be more than €52, so she's always going to be at least €48 ahead.

    The tax will probably be less than €52 but it all depends on her particular circumstances.

    Why should the government get more than you ?


  • Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    Which is better - 48% of something or 100% of nothing?


  • Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Why should the government get more than you ?

    Because that's the rate of tax...

    Or are you making a moral/ideological argument?


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