Buying a second home in Dublin

Donie75

Hi,
I live in the midlands and work in Dublin 2 - 3 days each week. I usually stay in a hotel a few nights each week and I can claim an overnight rate on my expenses. It looks like I will be doing this for the foreseeable future.
I own my home and I have a rental property with no mortgage. This makes €800pm but I am getting heavily taxed on it and when expenses are taken into account it only makes €320-340 per month.
I am considering selling this rental property and buying a 2 bed apartment in Dublin instead. I think an apartment in Dublin would be a better investment in the long run and I would have my own place to stay. This way I can still claim my expenses as I get a set overnight per diem (un-receipted) and rent the spare room to someone. Would I be eligible for the Rent a Room Scheme?
I understand I would have the extra running costs with management fees, insurance, LPT, heating, electric, etc.
Has anyone done this and has it worked out okay for you?

Michael D Not Higgins

Donie75 wrote: »

Would I be eligible for the Rent a Room Scheme?

Rent a room is subject to it being your sole or main residence. If you are indeed staying 2-3 nights a week in the apartment, you may be able to support the argument that it is a main residence. You would not be able to claim relief on renting a room in your midlands home as well.

This is all uneducated reading of the law as I understand it, so it might be worth investing a bit of money with an accountant to make sure you figures add up. I would also check you're not dropping yourself in it by claiming an expense from your employer for what you're declaring is your main residence for rent a room relief.

nompere

You should also ask a professional to explain the CGT consequences of changing your private residence from your midlands home to your Dublin apartment.

For CGT purposes a person may only have one private residence at a time.