How much is taken in tax

letsgo2018 · 02-12-2018 1:03pm #1

If someone wanted to rent out their house how much would they lose on tax

Caranica · 02-12-2018 1:12pm

letsgo2018 wrote: »

If someone wanted to rent out their house how much would they lose on tax

Depends on so many variables. General tax band, cost of interest on you mortgage, allowable deductions... Can't give a general answer.

Ning · 02-12-2018 1:44pm

Between 20% and 40% depending on your tax band.

Moonbeam · 02-12-2018 1:56pm

It is the same as you pay in income tax less expenses.

AndrewJRenko · 02-12-2018 5:33pm

letsgo2018 wrote: »

If someone wanted to rent out their house how much would they lose on tax

By and large, you will pay tax on your profits only, just like any other business.

Don't mix up profits with cash flow. You might have low or negative cash flow if you are repaying principal on a mortgage, but you will still be taxed on your profits.

The_Conductor · 02-12-2018 5:52pm

Potentially up to 54% (if you had no allowable expenses, no mortgage and no debt associated with the property- including property that may have been inherited). In general- its somewhere in the 30-40% range- lower for some people depending again on allowable expenses. For non-resident owners of property who let property out- there is a flatrate 20% deducted from the gross rent by renters and forwarded to Revenue by the tenant- the landlord then submits a tax return at the end of the year, and a balancing statement issues, and the landlord pays any additional owed (or gets a refund, as appropriate).

So- there isn't a straight forward answer- it depends- but it could potentially be up to 54% (but doesn't tend to be this high).

Revenue target any landlords who pay less than 30% on their rental income- for assessment purposes (its random though- you won't automatically be chosen for an assessment- and even if you pay more- you could still be chosen, the probability changes though.........)

Fian · 03-12-2018 1:05pm

AndrewJRenko wrote: »

By and large, you will pay tax on your profits only, just like any other business.

Don't mix up profits with cash flow. You might have low or negative cash flow if you are repaying principal on a mortgage, but you will still be taxed on your profits.

Well in fact you will pay tax on the income not on the profit. You will be allowed to deduct certain expenses, such as the interest portion of the mortgage, and will be allowed capital allowances but will not for example be able to just deduct the cost of replacing a fridge/cooker/boiler if the existing one breaks. So it is the income that is taxed not teh profit.

and it is taxed at your marginal rate - so 53% for most landlords.

Edgware · 03-12-2018 7:44pm

You will just have to be a bit more imaginative in your appraoch

Fol20 · 03-12-2018 8:01pm

Fian wrote: »

Well in fact you will pay tax on the income not on the profit. You will be allowed to deduct certain expenses, such as the interest portion of the mortgage, and will be allowed capital allowances but will not for example be able to just deduct the cost of replacing a fridge/cooker/boiler if the existing one breaks. So it is the income that is taxed not teh profit.

and it is taxed at your marginal rate - so 53% for most landlords.

Replacing a fridge is a deductible capital allowance.
You pay prsi and income tax after capital and current expenses. You pay usb before capital allowances

Sleeper12 · 03-12-2018 8:14pm

Fian wrote: »

Well in fact you will pay tax on the income not on the profit. You will be allowed to deduct certain expenses, such as the interest portion of the mortgage, and will be allowed capital allowances but will not for example be able to just deduct the cost of replacing a fridge/cooker/boiler if the existing one breaks. So it is the income that is taxed not teh profit.

and it is taxed at your marginal rate - so 53% for most landlords.

I'm sorry but that's nonsense.

The income is the rent. You do NOT pay tax on this. You deduct expenses as you say but once you deduct these what you have left is called profit.

You will only ever pay tax on the income if you have no expenses & if this were the case the income would be the profit. This is very basic profit & loss not rocket science. This has been covered on several rental threads already.

The Conductor is correct. 30 to 40 percent is the norm & almost no one pays 54 percent as you usually have some expenses

Sleeper12 · 03-12-2018 8:21pm

letsgo2018 wrote:

If someone wanted to rent out their house how much would they lose on tax

The best solution is to avail of the rent a room scheme rather than renting out the entire house. You can earn up to 14k tax free with the rent a room scheme. You'd need to pull in 20 to 25k a year renting the whole house to end up with 14k after tax. In Dublin you'll easily get 14k for two rooms in your home.

An Cigire · 03-12-2018 9:22pm

If someone is non resident for tax working abroad and rent out a house is it at lower tax band of 20% as your not paying rent in Ireland?

Also can it mentions above about mortgage interest being used as a deduction is that correct?

Cheers

relax carry on · 03-12-2018 9:32pm

An Cigire wrote: »

If someone is non resident for tax working abroad and rent out a house is it at lower tax band of 20% as your not paying rent in Ireland?

Also can it mentions above about mortgage interest being used as a deduction is that correct?

Cheers

It could be 20%, it could be less, it could be more. The 20% refers to tax tennants are supposed to deduct from the rental agreement payments and remit to Revenue if they are paying direct to a non resident landlord not an agent acting on behalf of the landlord. Mortgage interest is an allowable expense. If TRS is claimed, it needs to be ceased.

Seve OB · 03-12-2018 9:34pm

Fian wrote: »

Well in fact you will pay tax on the income not on the profit. You will be allowed to deduct certain expenses, such as the interest portion of the mortgage, and will be allowed capital allowances but will not for example be able to just deduct the cost of replacing a fridge/cooker/boiler if the existing one breaks. So it is the income that is taxed not teh profit.

and it is taxed at your marginal rate - so 53% for most landlords.

You haven't a clue have ya!

An Cigire · 03-12-2018 11:00pm

[/quote]

It could be 20%, it could be less, it could be more. The 20% refers to tax tennants are supposed to deduct from the rental agreement payments and remit to Revenue if they are paying direct to a non resident landlord not an agent acting on behalf of the landlord. Mortgage interest is an allowable expense. If TRS is claimed, it needs to be ceased.[/quote]

TRS does not apply to me, so potentaillly I could claim this mortgage interest at end of year once I’m PTRB registered.

If your tenant is paying let’s say the 20% tax as your a non resident landlord and you have mortgage interest and other deductibles do you get this back from revenue at year end from the tax the tenant has paid?

relax carry on · 03-12-2018 11:24pm

An Cigire wrote: »

It could be 20%, it could be less, it could be more. The 20% refers to tax tennants are supposed to deduct from the rental agreement payments and remit to Revenue if they are paying direct to a non resident landlord not an agent acting on behalf of the landlord. Mortgage interest is an allowable expense. If TRS is claimed, it needs to be ceased.[/quote]

TRS does not apply to me, so potentaillly I could claim this mortgage interest at end of year once I’m PTRB registered.

If your tenant is paying let’s say the 20% tax as your a non resident landlord and you have mortgage interest and other deductibles do you get this back from revenue at year end from the tax the tenant has paid?[/quote]

You file an income tax return with details of your tax residence and your rental accounts declared. The 20% tax which your tennants have hopefully remitted to Revenue will be allocated to your PPS and if your return indicates a refund is in order, then a refund issues.

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

An Cigire · 03-12-2018 11:29pm

Thanks for that. A lot I didn’t know cheers

sean8n · 10-12-2018 4:21am

Regarding Rent a Room Scheme, from the CI website:

"Currently, the total (gross) rent that you get, which includes sums that the tenant pays for food, utilities, laundry or similar goods and services, cannot exceed €14,000"

So the landlord must provide accommodation, utilities, laundry and even food in return for rent? Surely I have that wrong.

That's pretty tight, two tenants paying 450-500 each + electric would easily bring that to 14k, never mind laundry and food.

Frankly, I can't understand where food and laundry come into this, full board?

topmanamillion · 10-12-2018 5:12am

sean8n wrote: »

Regarding Rent a Room Scheme, from the CI website:

"Currently, the total (gross) rent that you get, which includes sums that the tenant pays for food, utilities, laundry or similar goods and services, cannot exceed €14,000"

So the landlord must provide accommodation, utilities, laundry and even food in return for rent? Surely I have that wrong.

That's pretty tight, two tenants paying 450-500 each + electric would easily bring that to 14k, never mind laundry and food.

Frankly, I can't understand where food and laundry come into this, full board?

You've misunderstood it. It's just allowing for situations where food, laundry and benefits like that are included in the rent, most likely students in digs.

For example, if the rent is E600/month including meals worth E100, the landlord can't deduct the worth of the meals. Otherwise, They might try stuff like that to keep themselves below the tax exempt figure of E14000.

wonski · 10-12-2018 5:26am

sean8n wrote: »

Regarding Rent a Room Scheme, from the CI website:

"Currently, the total (gross) rent that you get, which includes sums that the tenant pays for food, utilities, laundry or similar goods and services, cannot exceed €14,000"

So the landlord must provide accommodation, utilities, laundry and even food in return for rent? Surely I have that wrong.

That's pretty tight, two tenants paying 450-500 each + electric would easily bring that to 14k, never mind laundry and food.

Frankly, I can't understand where food and laundry come into this, full board?

It's also called rent a room scheme, not rent two rooms or four, for a reason

It is generally designed for owners giving up a room for a student etc.

14k is a generous tax free incentive.

Sleeper12 · 10-12-2018 8:20am

sean8n wrote:

So the landlord must provide accommodation, utilities, laundry and even food in return for rent? Surely I have that wrong.

Landlord does not have to provide laundry or food but if they do the total charges can't exceed 14k.

Don't forget 14k tax free is equivalent to renting out an entire house & paying tax on it. It really is a super deal and I'm supprised more struggling homeowners don't avail of it

sean8n · 11-12-2018 5:55am

Thanks guys. I'm in my 50s and apparently unemployable, but have no wish to go on welfare. I don't have a mortgage, nor an expensive lifestyle so I could live on 14k I could get from two rooms. I couldn't afford to include the electricity in the rent though, especially as it's just risen 7%, so that was my main worry.

Peregrinus · 11-12-2018 7:13am

sean8n wrote: »

Thanks guys. I'm in my 50s and apparently unemployable, but have no wish to go on welfare. I don't have a mortgage, nor an expensive lifestyle so I could live on 14k I could get from two rooms. I couldn't afford to include the electricity in the rent though, especially as it's just risen 7%, so that was my main worry.

Electricity is a utility, so if you charge rent and then charge for electricity on top of that, and the total of the two charges exceeds 14k, then you are outside the rent-a-room scheme.

4ensic15 · 11-12-2018 9:00am

If 14k is your only income the tax would be minimal if anything. With tax credits and deductions for expenses, the tax bill would most likely be wiped.

davindub · 11-12-2018 10:02am

Peregrinus wrote: »

sean8n wrote: »

Thanks guys. I'm in my 50s and apparently unemployable, but have no wish to go on welfare. I don't have a mortgage, nor an expensive lifestyle so I could live on 14k I could get from two rooms. I couldn't afford to include the electricity in the rent though, especially as it's just risen 7%, so that was my main worry.

Electricity is a utility, so if you charge rent and then charge for electricity on top of that, and the total of the two charges exceeds 14k, then you are outside the rent-a-room scheme.

Collecting money to pay a electricity bill split between people is not income to the payer though & its not part of the 14k.

L1011 · 11-12-2018 10:35am

davindub wrote: »

Collecting money to pay a electricity bill split between people is not income to the payer though & its not part of the 14k.

Revenue would not agree with you

Any bills of any description are part of the 14k

4ensic15 · 11-12-2018 10:39am

L1011 wrote: »

Revenue would not agree with you

Any bills of any description are part of the 14k

Absolutely.

ted1 · 11-12-2018 10:55am

davindub wrote: »

Collecting money to pay a electricity bill split between people is not income to the payer though & its not part of the 14k.

Get the tenant to pay the utility directly. Say 40 Euro a month direct debit into the electricity account

steamsey · 11-12-2018 11:33am

It basically goes like this

(Gross) Rental Income
- Mortgage Interest (85% I think moving to 100%)
- Non capital repairs (more day to day stuff like paint, bulbs, boiler servicing, etc)
- Mortgage protection premium
- Any other allowable expenses as per Revenue guidance
= Net Rental Income

Then deduct this year's portion of capital expenses - if any (expensive items you're writing off over several years to smooth out your tax liability)

= Taxable Rental Income

Multiply the above by your tax rate (20 or 40%), PRSI and USC = your tax liability

Then don't forget that once you have non PAYE income of over 5k I think it is, then you have to register for ROS as you will be self assessed so you have to do a Form 11 online each year. This then comes with the joy of preliminary tax which is a whole other pain in backside in the initial years anyway when you're trying to balance it out and find the cash (in your first year anyway) of essentially paying two years tax in one go. Some accountants have advised friends of mine not to bother with the prelim tax - seems like terrible advice to me and a recipe for an audit. Maybe Revenue are less concerned with smaller amounts of prelim tax but I wouldn't take the risk.

You'll often hear people giving out really dangerous advice to cut corners, to do this, don't do that. Usually this is them justifying their own corner cutting and should be taken with a dump truck of salt.

A good accountant can do your return for you for a few hundred and if you're unsure, I highly recommend getting one for the first few years to make sure you are on the right path. Could save you money and could save you a lot in interest and charges later on, if you mess it up. The accountants fees should be a deductible expense.

If you are getting TRS, cancel it as soon as your rent the place out as you're no longer entitled to it.

davindub · 11-12-2018 12:11pm

L1011 wrote: »

davindub wrote: »

Collecting money to pay a electricity bill split between people is not income to the payer though & its not part of the 14k.

Revenue would not agree with you

Any bills of any description are part of the 14k

I'm not offering a theory......and I do know this so I don't know where you are getting that from?

If you bill the lodger directly = income.

If you share an expense = not income.

You can of course confirm this with Revenue.

davindub · 11-12-2018 12:16pm

ted1 wrote: »

davindub wrote: »

Collecting money to pay a electricity bill split between people is not income to the payer though & its not part of the 14k.

Get the tenant to pay the utility directly. Say 40 Euro a month direct debit into the electricity account

There's no need to do this, flat charges would be income, if you have a bill of 200 euros and it is split 2 ways, that is not income

relax carry on · 11-12-2018 2:27pm

"The income that is taken into account in determining whether the relief applies is
the amount arising to an individual for the use of a room or rooms in the qualifying
residence in respect of their use as residential accommodation. Any amounts arising
for meals, cleaning, laundry or other similar goods and services that are incidentally
provided in connection with the residential use are also taken into account"

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf

Pkiernan · 11-12-2018 3:06pm

davindub wrote: »

There's no need to do this, flat charges would be income, if you have a bill of 200 euros and it is split 2 ways, that is not income

You are mistaken and giving bad advice.

L1011 · 11-12-2018 3:37pm

davindub wrote: »

I'm not offering a theory......and I do know this so I don't know where you are getting that from?

If you bill the lodger directly = income.

If you share an expense = not income.

You can of course confirm this with Revenue.

The Revenue rule are quite clear and do not vaguely agree with you, indeed they are specifically designed to stop your attempt to work around them.

If someone follows your bad advice and gets caught having taken 14001 they are liable for tax on the lot

Do not give this unsafe "advise" here again

davindub · 11-12-2018 5:25pm

L1011 wrote: »

davindub wrote: »

I'm not offering a theory......and I do know this so I don't know where you are getting that from?

If you bill the lodger directly = income.

If you share an expense = not income.

You can of course confirm this with Revenue.

The Revenue rule are quite clear and do not vaguely agree with you, indeed they are specifically designed to stop your attempt to work around them.

If someone follows your bad advice and gets caught having taken 14001 they are liable for tax on the lot

Do not give this unsafe "advise" here again

I have helpfully & safely advised to confirm with Revenue, they have a helpdesk for PAYE which handles rent a room.

Or is it a breach of forum charter for a moderator to have given incorrect information?

Claw Hammer · 11-12-2018 5:30pm

davindub wrote: »

There's no need to do this, flat charges would be income, if you have a bill of 200 euros and it is split 2 ways, that is not income

It may not be income but asking the person to pay their half of a bill is charging them and is added to the rent. It is the gross amount collected which determines whether rent a room relief applies or not. The bill is in the landlords name, hence the landlord is providing the utility to the tenant and then seeking to recoup outlay. In a normal tax situation the income would be cancelled by the outlay so there would be no taxable profit, but rent a room is different. It is the gross collected with no allowance for outlay.

relax carry on · 11-12-2018 5:49pm

davindub wrote: »

I have helpfully & safely advised to confirm with Revenue, they have a helpdesk for PAYE which handles rent a room.

Or is it a breach of forum charter for a moderator to have given incorrect information?

Per the link and text posted earlier, what you described as splitting the bill is rental income. That's the official line. If I encountered it on a case that's how I'd describe it refering to the tax and duty manual posted.

Claw Hammer · 11-12-2018 6:54pm

davindub wrote: »

I have helpfully & safely advised to confirm with Revenue, they have a helpdesk for PAYE which handles rent a room.

Or is it a breach of forum charter for a moderator to have given incorrect information?

It follows from that that you did not confirm anything with revenue, which in any case only means getting some junior official on the end of a phone. The Revenue have been quite explicit on this point whenever it has commented publicly. what might seem logical to you does not man that it is correct.

davindub · 11-12-2018 7:08pm

Claw Hammer wrote: »

It follows from that that you did not confirm anything with revenue, which in any case only means getting some junior official on the end of a phone. The Revenue have been quite explicit on this point whenever it has commented publicly. what might seem logical to you does not man that it is correct.

I actually have confirmed it with Revenue this year, I wouldn't really recommend anyone follow advice online so confirm it themselves.

Simple enough for anyone to confirm and safe enough to follow Revenues own advise. You might not respect the junior officials but they answer quite a few queries, it's as much as you can do.

https://www.revenue.ie/en/contact-us/customer-service-contact/pay-as-you-earn-paye.aspx

davindub · 11-12-2018 7:16pm

relax carry on wrote: »

Per the link and text posted earlier, what you described as splitting the bill is rental income. That's the official line. If I encountered it on a case that's how I'd describe it refering to the tax and duty manual posted.

"The income that is taken into account in determining whether the relief applies is
the amount arising to an individual for the use of a room or rooms in the qualifying
residence in respect of their use as residential accommodation. Any amounts arising
for meals, cleaning, laundry or other similar goods and services that are incidentally
provided in connection with the residential use are also taken into account"

Where are 3rd party bills mentioned?

There is one document online somewhere that would have supported what you are saying, but I was informed that it applied if you charge a monthly amount for bills. E.g. 100 per month.

Claw Hammer · 11-12-2018 7:56pm

davindub wrote: »

I actually have confirmed it with Revenue this year, I wouldn't really recommend anyone follow advice online so confirm it themselves.

Simple enough for anyone to confirm and safe enough to follow Revenues own advise. You might not respect the junior officials but they answer quite a few queries, it's as much as you can do.

https://www.revenue.ie/en/contact-us/customer-service-contact/pay-as-you-earn-paye.aspx

talking to a junior official on a phone safe! you have to be joking. Such advice is quite often wrong and when it goes wrong there will be no junior official to admit they made a mistake.
Unless you can find a practice direction setting out exactly what should happen in the exact situation contemplated you need to look to the letter of the Act.

L1011 · 11-12-2018 8:32pm

davindub wrote: »

I have helpfully & safely advised to confirm with Revenue, they have a helpdesk for PAYE which handles rent a room.

Or is it a breach of forum charter for a moderator to have given incorrect information?

You were misinformed by a call centre staff member. You may have some legal comfort from this (if you can prove it happened), other people you further misinform do not.

Do not post in this thread again

Gumbo · 11-12-2018 10:10pm

davindub wrote: »

"The income that is taken into account in determining whether the relief applies is
the amount arising to an individual for the use of a room or rooms in the qualifying
residence in respect of their use as residential accommodation. Any amounts arising
for meals, cleaning, laundry or other similar goods and services that are incidentally
provided in connection with the residential use are also taken into account"

Where are 3rd party bills mentioned?

There is one document online somewhere that would have supported what you are saying, but I was informed that it applied if you charge a monthly amount for bills. E.g. 100 per month.

Services

YakerK · 12-12-2018 12:35am

L1011 wrote: »

You were misinformed by a call centre staff member. You may have some legal comfort from this (if you can prove it happened), other people you further misinform do not.

Do not post in this thread again

Actually, he is right. I’ve also confirmed this is writing with Revenue and the explicitly confirmed that bill sharing is not part of the income you need to consider towards the €14k.

There is nothing on any revenue guidance which suggests you need to count “income” for a service that you didn’t provide.

sean8n · 12-12-2018 6:18am

Claw Hammer wrote: »

The bill is in the landlords name, hence the landlord is providing the utility to the tenant and then seeking to recoup outlay. In a normal tax situation the income would be cancelled by the outlay so there would be no taxable profit, but rent a room is different. It is the gross collected with no allowance for outlay.

This makes the most sense to me, even though it's not what I want to hear.

So my options are:

1) Include the electric and keep the total under 14k, pay no tax, PRSI or USC.

2) Charge for the electric, then pay 20% of the rental income, plus PRSI and USC, minus all expenses. And have to deal with all this paperwork.

I'd probably end up with the same amount.

I will go with option 1. How to report this to the taxman though, the assumption with rent-a-room seems to be that it's a side income. It falls between all categories, not a B&B, not renting out a whole property, not self-employed business and yet in my case it would be my sole income.

L1011 · 12-12-2018 8:28am

YakerK wrote: »

Actually, he is right. I’ve also confirmed this is writing with Revenue and the explicitly confirmed that bill sharing is not part of the income you need to consider towards the €14k.

There is nothing on any revenue guidance which suggests you need to count “income” for a service that you didn’t provide.

I don't see how Revenue can provide this advice when it is clearly a service and hence included in the 14k cap.

At best it leaves people at the mercy of the opinion of an individual tax inspector which is not vaguely safe

yaboya1 · 12-12-2018 8:36am

So let's say you charge less than €14k rent and instruct the tenant to put the electricity bill in their own name.
Is that a legal way of charging the tenant for the electricity, but avoiding tax?

Peregrinus · 12-12-2018 8:56am

yaboya1 wrote: »

So let's say you charge less than €14k rent and instruct the tenant to put the electricity bill in their own name.
Is that a legal way of charging the tenant for the electricity, but avoiding tax?

I think the problem is that the tenant's room is unlikely to be separately metered, or be the subject of a separate electricity account.

Typically, there'll be a single account for the house, and that account will be in the name of the householder, who is letting the room. It's unlikely that the electricity supplier would allow the account to be put in the name of someone who is not the householder. If the tenant pays a sum which is designated as "contribution to electricity account", that's not based on a measurement of how much electricity the tenant has used, since there is no meter to measure that. It could, in theory, be based on an estimate of how much the tenant is likely to have used, but far more likely is that it will simply be an apportionment of the electricity bill.

If the contribution is simply stated as "x euros per month towards electricity", I think you simply add that x euros to the amount characterised as rent, and if the total exceeds 14k per year, you're cactus.

What if the contribution is stated as x% of the electricity bill? I still think that on a strict reading of the legislation (Taxes Consolidation Act 1997 s 216A) in paying a share of the electricity bill the tenant is discharging an obligation of the householder (since the householder is liable to the electricity supplier for the entire bill) and that's a "relevant sum" which counts towards the 14k limit.

4ensic15 · 12-12-2018 9:00am

L1011 wrote: »

I don't see how Revenue can provide this advice when it is clearly a service and hence included in the 14k cap.

At best it leaves people at the mercy of the opinion of an individual tax inspector which is not vaguely safe

I would like to see this written advice. Revenue issue guidance notes generally and don't offer hypothetical advice on these situations. Putting a bill in the tenants name is something any live-in landlord is unlikely to do, patricularly if the landlord is going to have to pay a share of it. It could also be seen as artificial avoidance. It might work if a tenant paid directly for a tank of heating oil.

Peregrinus · 12-12-2018 9:04am

4ensic15 wrote: »

I would like to see this written advice. Revenue issue guidance notes generally and don't offer hypothetical advice on these situations. Putting a bill in the tenants name is something any live-in landlord is unlikely to do, patricularly if the landlord is going to have to pay a share of it. It could also be seen as artificial avoidance. It might work if a tenant paid directly for a tank of heating oil.

Only if the tenant had a separate heating system, I think. If the tenant is paying for oil to heat the entire house, I can't see the Revenue taking the view that that's not a "relevant sum".

Amirani · 12-12-2018 12:42pm

L1011 wrote: »

I don't see how Revenue can provide this advice when it is clearly a service and hence included in the 14k cap.

At best it leaves people at the mercy of the opinion of an individual tax inspector which is not vaguely safe

Revenue: "The income that is taken into account in determining whether the relief applies is the amount arising to an individual for the use of a room or rooms in the qualifying residence in respect of their use as residential accommodation. Any amounts arising for meals, cleaning, laundry or other similar goods and services that are incidentally provided in connection with the residential use are also taken into account"

It's important here to understand the meaning of "goods and services that are incidentally provided in connection". If you as a landlord are charging €13,999 to your tenant, and one night you decide to order a pizza together and split the bill, you don't automatically go over the threshold despite the "amounts arising for meals" in the Revenue statement.

"Incidentally" in the Revenue definition is important here. If a rent-a-room tenant runs up a massive phone bill or electricity bill, then this use wouldn't count as "incidental" and hence wouldn't be provided for within the scope of Revenue's text. Regular use of electricity etc. would be incidental.

How much is taken in tax

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