Buy to let with mortgage tax implications?

sillysam

HI, im wondering if anyone can help. We have a lumpsum in the bank doing nothing. We are thinking of buying an apartment/house to let in Cork. If we buy a property of a certain amount we would have the 30% and would get a mortgage for the other 70% interest rate approx 4.95% Mortgage repayments would be roughly 700 pm. The property would rent for at least 900 pm. With an annual maintenance fee of 1300.

Can anyone tell me the tax liability and also the tax relief per annum. Is there a method used to calculate this?

Also which is better to but a city centre apartment or a small house in a not so good area but still not too far from the city. I assume buying a residental property in an estate 45mins outside city wouldnt be as good?

Lockedout2

How much is the mortgage? 4.95% of what?

Geuze

It continually surprises me that people considering putting tens of thousands into buying assets don't know how to calculate the income taxes due on the income from the asset.

Read this, IT70:

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

Geuze

Rough answer.

Taxable rental profits = gross rental income less allowable deductions

Main deductions:

75% of mortgage interest
maintenance/repairs
capital allowances