Tax on rental income query

Hellywelly

Hello.
My mum owns her own house outright. Her only income is state old age pension. She's almost 80 so not working.
If she comes to live with me and rents out her house would she be liable for tax on all the rental income or would she have some tax credits to offset against the rental income? I have looked at Revenue site and can't find this information.
Thank you!

duffysfarm

She would have the single person Credit, paye Credit for pension income which both come to €3300. She would also get the old age Credit which is around €550.


quote="Hellywelly;102365316"]Hello.
My mum owns her own house outright. Her only income is state old age pension. She's almost 80 so not working.
If she comes to live with me and rents out her house would she be liable for tax on all the rental income or would she have some tax credits to offset against the rental income? I have looked at Revenue site and can't find this information.
Thank you![/quote]

hjr

Based on an old age pension of approx €12,000 per annum, (€230 per week) she would be using about €2,400 of her credits for her pension, leaving her about €900 of tax credits to be used elsewhere...she could potentially earn about €4,500 of rental income before she paid tax...As shes over 65 she would be PRSI exempt, but would have a small USC liability....

adrianw

Just a small point of note on the above posts. PAYE credit would not apply as rental income is not PAYE income

Geuze

But PAYE credit is allowed against State Pension income.

Heisenburg81

Hellywelly wrote: »

Hello.
My mum owns her own house outright. Her only income is state old age pension. She's almost 80 so not working.
If she comes to live with me and rents out her house would she be liable for tax on all the rental income or would she have some tax credits to offset against the rental income? I have looked at Revenue site and can't find this information.
Thank you!

Key point here is when single and aged over 65 there is an exemption from income tax when your total income is less than €36,000.
Total income includes net rental income and the state pension in this case.
Will be USC payable.
See Revenue leaflet IT8.

CIARAN_BOYLE

Heisenburg81 wrote: »

Key point here is when single and aged over 65 there is an exemption from income tax when your total income is less than €36,000.
Total income includes net rental income and the state pension in this case.
Will be USC payable.
See Revenue leaflet IT8.

€18,000 unless married see it1.

Heisenburg81

CIARAN_BOYLE wrote: »

€18,000 unless married see it1.

Thanks. Knew that but early morning.!