Rental income

tmccar

I have 2 rental properties for which I receive €22,230 in rent for the year (so tax would be about €9000 + USC). Would I be entitled to tax relief on mortgage payments, and by approximately how much my tax would be reduced?

CIARAN_BOYLE

tmccar wrote: »

I have 2 rental properties for which I receive €22,230 in rent for the year (so tax would be about €9000 + USC). Would I be entitled to tax relief on mortgage payments, and by approximately how much my tax would be reduced?

75% of the mortgage interest would reduce your income. So if mortgage interest interest is €10,000 you are taxed (and usc/prsied) on €7,500 less income.

tmccar

Thanks for that info. And if it had not been claimed for a few years, could I claim it this year?

CIARAN_BOYLE

tmccar wrote: »

Thanks for that info. And if it had not been claimed for a few years, could I claim it this year?

You could file amended returns for the previous years. You can't just claim it all this year.

Geuze

tmccar wrote: »

I have 2 rental properties for which I receive €22,230 in rent for the year (so tax would be about €9000 + USC). Would I be entitled to tax relief on mortgage payments, and by approximately how much my tax would be reduced?

Read this:

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

There are other deductions available, as well as mortgage interest.

tmccar

That's great, thanks

exaisle

CIARAN_BOYLE wrote: »

75% of the mortgage interest would reduce your income. So if mortgage interest interest is €10,000 you are taxed (and usc/prsied) on €7,500 less income.

The restriction to 75% of mortgage income as a deduction against rental income only applies to residential properties, and the deduction is only allowable if the tenancies are registered with the PRTB (whose fees are allowable). If, however, the tenant is on rent supplement, or if the rent is payable by a local authority, the landlord can apply to Revenue for a revision after three years to claim 100% relief for mortgage interest.

If the properties are commercial, 100% of the mortgage interest is allowable.

From what I've seen, the majority of people who do their own tax returns for rental income tend to get it wrong and often not in their own favour, (ie. they tend to not deduct allowable expenses from the gross rental income and hardly ever claim capital allowances). Given that you want to revise four years, you might consider putting it into the hands of a professional...whose fees are allowable as a deduction too by the way :-)

john1963

exaisle wrote: »

The restriction to 75% of mortgage income as a deduction against rental income only applies to residential properties, and the deduction is only allowable if the tenancies are registered with the PRTB (whose fees are allowable). If, however, the tenant is on rent supplement, or if the rent is payable by a local authority, the landlord can apply to Revenue for a revision after three years to claim 100% relief for mortgage interest.

If the properties are commercial, 100% of the mortgage interest is allowable.

From what I've seen, the majority of people who do their own tax returns for rental income tend to get it wrong and often not in their own favour, (ie. they tend to not deduct allowable expenses from the gross rental income and hardly ever claim capital allowances). Given that you want to revise four years, you might consider putting it into the hands of a professional...whose fees are allowable as a deduction too by the way :-)

jjust curious, what do you mean by capital allowances. I put new windows into my rental but I understood I could not claim this as an expense
thanks

ted1

How did you manage to become a landlord with two properties and fail to do any research on taxes or of fail to get a decent accountant?

relax carry on

john1963 wrote: »

jjust curious, what do you mean by capital allowances. I put new windows into my rental but I understood I could not claim this as an expense
thanks

Please have a read.

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

lbyrne121

Hi sorry to take over this thread but would someone be able to 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

exaisle

Go and see an accountant. Their fees are tax deductible and from what I've seen here, they're bound to save you at least some tax.....