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Rental Income

  • 12-10-2019 1:59pm
    #1
    HappyAsLarE
    Closed Accounts Posts: 771 ✭✭✭


    Hi,

    Looking for some simple questions answered please.

    My wife has started to rent out her house from June just gone. She doesn’t live there. Rent is over €1k per month.

    I am assuming that we need to register with ROS by end Oct and pay tax on income earned so far this year?
    Does she owe any pre-payment of tax she is expected to earn next year?

    Thanks


Comments

  • #2
    Calahonda52
    Registered Users Posts: 12,188 ✭✭✭✭Calahonda52


    Is she registered with the Tenancy board.
    What make you think you need to pay tax on 2019 income in 2019?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #3
    HappyAsLarE
    Closed Accounts Posts: 771 ✭✭✭HappyAsLarE


    Calahonda52 wrote: »
    Is she registered with the Tenancy board.
    What make you think you need to pay tax on 2019 income in 2019?

    Yes PRTB registered.

    I take it from your question that we don’t need to pay tax this October so? We are both Paye so pay our tax for this week on Fridays!


  • #4
    Calahonda52
    Registered Users Posts: 12,188 ✭✭✭✭Calahonda52


    Any tax you pay for income earned in 2019 by end October 2019 will be preliminary tax for 2019.
    .
    In addition, when you do the math on the rent what is the taxable income after expenses?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #5
    HappyAsLarE
    Closed Accounts Posts: 771 ✭✭✭HappyAsLarE


    Calahonda52 wrote: »
    Any tax you pay for income earned in 2019 by end October 2019 will be preliminary tax for 2019.
    .
    In addition, when you do the math on the rent what is the taxable income after expenses?

    So we do have to pay tax by end Oct 2019??

    The net rental income after expenses is about €10k per year.


  • #6
    zephyro
    Registered Users Posts: 87 ✭✭zephyro


    Pay and file deadline for the year 2019 isn't until October 2020.


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  • #7
    walshb
    Registered Users Posts: 54,573 ✭✭✭✭walshb


    I think I know the answer, but want to be sure.

    Are mortgage repayments allowed as an expense for rental income purposes? I think not.

    I know mortgage interest paid per year is allowed, but the actual monthly mortgage repayments? Not allowed?


  • #8
    Rows Grower
    Registered Users Posts: 7,816 ✭✭✭Rows Grower


    walshb wrote: »
    I think I know the answer, but want to be sure.

    Are mortgage repayments allowed as an expense for rental income purposes? I think not.

    I know mortgage interest paid per year is allowed, but the actual monthly mortgage repayments? Not allowed?

    I'm not so sure mortgage interest paid per year is allowed in all cases, you need to check that out if your payment is coming from RAS or HAP scheme as I think it might have to be a 3 year minimum contract to qualify for that.

    "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.



  • #9
    Baby01032012
    Registered Users Posts: 1,622 ✭✭✭Baby01032012


    Yes 100% mortgage interest is allowable. It used to be 75% and increased slowly. It used to be only HAP or RAS tenancies could claim 100%, all the same now.


  • #10
    walshb
    Registered Users Posts: 54,573 ✭✭✭✭walshb


    But mortgage repayments on your mortgage to the lender...not allowed as an expense?


  • #11
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    walshb wrote: »
    But mortgage repayments on your mortgage to the lender...not allowed as an expense?

    No, just the interest.

    If you got a deduction for the capital element of a mortgage payment, you'd be getting a deduction for the actual cost of the property itself.

    You get that deduction against CGT when the property is disposed of.


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  • #12
    walshb
    Registered Users Posts: 54,573 ✭✭✭✭walshb


    barneystinson wrote: »
    No, just the interest.

    If you got a deduction for the capital element of a mortgage payment, you'd be getting a deduction for the actual cost of the property itself.

    You get that deduction against CGT when the property is disposed of.

    Nice one. I was 99 percent sure. Just holding out hope that I was wrong!!

    It’s a fooking scourge of a tax...


  • #13
    Geuze
    Registered Users Posts: 13,055 ✭✭✭✭Geuze


    walshb wrote: »
    But mortgage repayments on your mortgage to the lender...not allowed as an expense?

    Mortgage capital repayments = a form of saving by the house owner.

    You don't get tax relief on savings.


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