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Rental income & self-employed tax

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  • 24-10-2016 11:22am
    #1
    cmbutler
    Registered Users Posts: 11 ✭


    Hello,
    I'm trying to figure out how much tax i need to pay.
    I have a one bed apartment that i rented - i've figured out my tax liability on that.

    I made 2,000 last year (a nixer project). I'm trying to figure out how much tax i should pay on that.

    Help!
    Tagged:


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    #2
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    cmbutler wrote: »
    Hello,
    I'm trying to figure out how much tax i need to pay.
    I have a one bed apartment that i rented - i've figured out my tax liability on that.

    I made 2,000 last year (a nixer project). I'm trying to figure out how much tax i should pay on that.

    Help!

    Impossible to say without knowing about the rest of your income situation to be honest.

    It's either going to be 20%, 40% or somewhere inbetween for income tax.

    4% PRSI

    7% USC


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    #3
    exaisle
    Registered Users Posts: 2,673 ✭✭✭exaisle


    How long is a piece of string??

    In the absence of other information, specifically what other sources and amounts of income you have and how much tax has already been paid, it's impossible to say how much you'll owe.

    Makes me wonder how you were able to work out the tax due on the rental income....are you sure you're right?

    Stock reply to these types of questions is: Get yourself an accountant. Their fees are tax deductible.


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    #4
    cmbutler
    Registered Users Posts: 11 ✭cmbutler


    Wow! that was quick. Thank you.

    My rental income is 9,800 per year (thankfully the rental covers the mortgage repayments). Mortgage interest is approximately 4,900. Other expenses are small and standard.

    I have no other income. The 2,000 was a nixer project. There is a lot of information online regarding rental income and tax but not that much regarding rental income and other income where the 'other' income is smaller.

    I've employed an accountant but i haven't heard back from him. It's a busy time of the year for them. I'm just a bit worried (dreading it) about how much i'll have to pay so i thought i'd post here to find out.

    Thanks again


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    #5
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    You're aware that you can only claim 75% of the mortgage interest amount, as long as you are PRTB registered, as a deduction?

    You should have no Income tax liability or USC liability on the 2000 if that's your only other source of income. Not sure of the PRSI implications.


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    #6
    cmbutler
    Registered Users Posts: 11 ✭cmbutler


    Thanks for that. Yes, i'm aware of 75% only. I need to be more exact in my posts.... i'm new to posting on here...


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    #7
    exaisle
    Registered Users Posts: 2,673 ✭✭✭exaisle


    If your total income is less than €5000 then you won't pay any PRSI. If it's more, you'll pay a minimum amount of €500. However, this will qualify you with a year's contribution for the contributory retirement pension when you reach the appropriate age. €500 per year for a pension of around €235 per week is probably the best pension deal around...


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