Mortgage Interest Relief against rental income.

biznewbie · 2023-07-04 15:34:58

I'm curious if someone can provide clarification on Mortgage Interest Relief in relation to rental income. If I rent out my home, am I eligible to deduct the interest I pay on the mortgage as an expense, thereby reducing the amount of taxes I owe? In other words, if I receive €1500 in rental income and pay €500 in…

04-07-2023 03:34PM

#1

biznewbie

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I'm curious if someone can provide clarification on Mortgage Interest Relief in relation to rental income.
If I rent out my home, am I eligible to deduct the interest I pay on the mortgage as an expense, thereby reducing the amount of taxes I owe? In other words, if I receive €1500 in rental income and pay €500 in interest, would I be taxed on €1000 rather than the full €1500?
Thank you in advance.

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#2 04-07-2023 03:42PM

Rows Grower

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If you rent out your home where will you live?

"Very soon we are going to Mars. You wouldn't have been going to Mars if my opponent won, that I can tell you. You wouldn't even be thinking about it."
Donald Trump, March 13th 2018.

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#3 05-07-2023 08:28AM

SureYWouldntYa

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https://www.boards.ie/discussion/2058303689/mortgage-interest-relief-against-rental-income

Yes that is exactly how it would work
100% of the interest is allowed as a deduction since 2019, and the tenancy must be registered with the RTB
See below guide from Revenue
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-08-10.pdf

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