Rental Income

HappyAsLarE · 12-10-2019 1:59pm #1

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

Calahonda52 · 12-10-2019 2:02pm

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

HappyAsLarE · 12-10-2019 3:00pm

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!

Calahonda52 · 13-10-2019 10:34am

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?

HappyAsLarE · 13-10-2019 8:53pm

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.

zephyro · 13-10-2019 10:09pm

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

walshb · 04-07-2020 6:36pm

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?

Rows Grower · 04-07-2020 6:52pm

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.

Baby01032012 · 04-07-2020 6:58pm

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.

walshb · 04-07-2020 7:46pm

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

barneystinson · 04-07-2020 10:05pm

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.

walshb · 04-07-2020 10:26pm

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...

Geuze · 05-07-2020 11:37pm

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.

Rental Income

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