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Daughter living in second home as student and renting out 2 rooms

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  • 20-05-2020 10:33am
    #1
    Hannaho
    Registered Users Posts: 723 ✭✭✭


    Hi!

    We have a house we used to rent out - a house I bought in 1993 as my first home when single. We used to rent out but don't want to do so any more - too much hassle with tenants, too risky with current anti-landlord bias. My daughter wants to go to college in Dublin, and wants to stay in the house, and rent out two rooms to preferably post grad students, but may end up being her own age. The house is well maintained but basically furnished, wiring and plumbing up to date etc. What are the tax implications for me and/or my daughter is she stayed in the house and rented out two rooms. She would get about 800 per m month. We calculated that 200 per month should go into a maintenance fund in her name, and the rest would be for her. This means she would just retain her Saturday job, and would not have to work a lot of hours during her degree - she has mild dyslexia so assignments can be a struggle at times. If anyone can advise on tax implications, I would really appreciate it.


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    #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    If she keeps the rent then the only theoretical tax implication is CAT liability for her for receiving the gift of the house. But (a) it would almost certainly be covered by the annual 6k small gifts exemption from both you and your wife before even starting to eat into lifetime threasholds and (b) I can't see how its even remotely enforceable or if anyone has every actually paid tax on it or reduced a lifetime threshold. Like everything to do with CAT its a ridiculous concept.

    She would be covered under the rent a room scheme so once she gets under 14k per year she would have no tax liability though she would still have to make a return.


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