income tax on rental income , mortgage exceeds

finbarr1

Does anyone know if there is a space on form11 income tax to fill in details of mortgage repayments.  I am worried about owing money on a rented house, but the rental income does not cover mortgage and I subside it, so I can not afford to pay tax on something that I already struggle to maintain.  I am trying to contact revenue about this, but seeing as this is taking a while for a response, I just thought id check here.

thomas 123

I cant comment on the rest of this as im not a Landlord.

But if you need to contact revenue go in to your local office with your paper work. They take more than 20 days to reply online and you may as well be talking to the wall if your lucky enough to get through to them on the phone.

Rulmeq

It doesn't matter if your rental income covers your mortgage payments or not, you can only claim tax relief on the mortgage interest payments (up to some percentage of it, 80% I believe at the moment, but it was lower in the past). This means that you will have a tax liability, unless you have capital losses, or expenses to write off against the income. There's also PRSI and USC on rental income these days (I believe, could be wrong on that bit).

Have a long read of the documentation that's up on the revenue website for more information: https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

Geuze

finbarr1 wrote: »

Does anyone know if there is a space on form11 income tax to fill in details of mortgage repayments.  I am worried about owing money on a rented house, but the rental income does not cover mortgage and I subside it, so I can not afford to pay tax on something that I already struggle to maintain.  I am trying to contact revenue about this, but seeing as this is taking a while for a response, I just thought id check here.

The mortgage repayments are not relevant.

The mortgage interest paid is relevant to your tax liability.

Alan_007_

You should probably hire an accountant to look after your income tax for you.

It might be a cost now but they could end up paying for themselves through deductions that are allowed that you might not know about.

Bobby1984

finbarr1 wrote: »

Does anyone know if there is a space on form11 income tax to fill in details of mortgage repayments.  I am worried about owing money on a rented house, but the rental income does not cover mortgage and I subside it, so I can not afford to pay tax on something that I already struggle to maintain.  I am trying to contact revenue about this, but seeing as this is taking a while for a response, I just thought id check here.

Do you live in this house that you are renting out (ie are you renting rooms out) or do you live somewhere else?

filbert the fox

finbarr1 wrote: »

Does anyone know if there is a space on form11 income tax to fill in details of mortgage repayments.  I am worried about owing money on a rented house, but the rental income does not cover mortgage and I subside it, so I can not afford to pay tax on something that I already struggle to maintain.  I am trying to contact revenue about this, but seeing as this is taking a while for a response, I just thought id check here.

In order to understand your situation in full would you like to expand on whether you have this property separately to your principal private residence. ?

Calahonda52

Rulmeq wrote: »

It doesn't matter if your rental income covers your mortgage payments or not, you can only claim tax relief on the mortgage interest payments (up to some percentage of it, 80% I believe at the moment, but it was lower in the past). This means that you will have a tax liability, unless you have capital losses, or expenses to write off against the income. There's also PRSI and USC on rental income these days (I believe, could be wrong on that bit).

Have a long read of the documentation that's up on the revenue website for more information: https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

Capital losses against income? New idea to me

Fian

You can't expect your after tax income to cover your repayments of the principal of the mortgage. Think of a property investment as a sort of savings scheme. You subsidise the mortgage for decades from your other income, but that subsidy reduces over time as rent inflation makes the income a bigger proportion of the mortgage payments, and in the end you have a valuable asset.

As has been pointed out above you can write off 80% of the mortgage interest, which you will find on your statement, as an expense. You can also write off the cost off an accountant which would probably be worth your while. You will pay tax at your marginal rate, as well as PRSI and USC on the balance. You can't write off teh cost of furniture or washing machines etc., but you can write them off over 12 years, which i expect was what teh previous poster was referring to as capital losses. If there are management fees you can also write those off.

If you are renting a room in your own house you can avail of renta room relief though.

Bobby1984

Fian wrote: »

You can't write off teh cost of furniture or washing machines etc., but you can write them off over 12 years, which i expect was what teh previous poster was referring to as capital losses. If there are management fees you can also write those off.

.

Just a small correction as I am sure you meant to say that capital items are written off over 8 years at 12.5%.

Rows Grower

thomas 123 wrote: »

I cant comment on the rest of this as im not a Landlord.

But if you need to contact revenue go in to your local office with your paper work. They take more than 20 days to reply online and you may as well be talking to the wall if your lucky enough to get through to them on the phone.

This may well be your own experience but I have to say it is not something I have encountered in dealing with revenue.

Maybe it's because you are not registered with ROS the online service that you are not getting online replies, as for them not being helpful over the phone I think they are probably the most customer orientated, best trained people I have ever spoken to over the phone.

(Apart from that guy in Germany who worked for Aldi and replaced my purchase and spoke to me like I owned Aldi.)

filbert the fox

OP - anybody there ?

finbarr1

thanks for replies, btw as someone asked, I am renting the whole house and no longer live in the country

relax carry on

finbarr1 wrote: »

thanks for replies, btw as someone asked, I am renting the whole house and no longer live in the country

As a non resident landlord do you have a collection agent acting on your behalf or are the tennants holding back the 20% of the rent to remit to Revenue on your behalf?

https://www.revenue.ie/en/property/rental-income/irish-rental-income/how-do-you-declare-your-rental-income.aspx

exaisle

The number of misconceptions regarding what you can and can't claim against rental income is astounding....probably equal to the number of bar-room lawyers/solicitors that there are....

Really, if you're a landlord and renting for the first time, go and spend the couple of hundred euro that an accountant will charge you. It will save you money in the long run.

Calahonda52

exaisle wrote: »

The number of misconceptions regarding what you can and can't claim against rental income is astounding....probably equal to the number of bar-room lawyers/solicitors that there are....

Really, if you're a landlord and renting for the first time, go and spend the couple of hundred euro that an accountant will charge you. It will save you money in the long run.

Sometimes its a sense of entitlement/raging against the machine that provides all the services.....