Investment House -

vmware

Looking at buying a house 3 bed, for 120k approx, this will be a cash purchase



current tenants are in house paying 900 a month, €10800 a year income from the house.



My question is how much tax do I have to pay on this rental income



Im a PAYE employee, in the high tax bracket


I know I can offset the house insurance against the rental income



what else can be offset against the rental income


Thanks

Geuze

After you make the relevant deductions from the gross rental income, the net rental profits are added to your regular wages/income.

Assuming you face a marginal tax rate (MTR) of 40%, then the net rental profits will be subject to the normal 40% tax, just like any extra income will be taxed at 40%.

Then there is USC and PRSI.

virginmediapls

vmware, so presumably you're in cork? And you found a 3-bed for 120k?! Jealous.

Don't forget you'll be liable for most issues with the house so you'll only receive a fraction of that 6480 p.a you make. A new boiler and some plumbing and you'll be running a deficit for the year.

steamsey

vmware wrote: »

what else can be offset against the rental income


Thanks

https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

It's all listed there

NIMAN

Always found this site useful when I was an accidental landlord a few years back.

https://www.irishlandlord.com/

dxhound2005

Another useful site.

https://www.citizensinformation.ie/en/