Hi
The wife and I are looking to buy a house with a mortgage. In our area - some of the better value houses are large rambling yokes far too large for us and sometimes containing a basement apartment.
One option we're looking at is to buy one and then rent out a basement or floor to a tenant. What are the tax (dis)advantages of this?
From perusing this board and elsewhere - it looks like?
1. We would only pay income tax on the rental income if it exceeds €10,000 per year
2. Even if it did exceed €10,000 - we'd be able to offset our mortgage interest against this rental income? Right? Essentially making the rental income from a basement apartment essentially tax free for us? Or am I missing something?
3. We'd also be able to offset expenses associated with repairs, etc to the basement apartment against rental income? For example, could be capitalise the cost of renovation and then depreciate it over time?
Any thoughts?
The wife and I are looking to buy a house with a mortgage. In our area - some of the better value houses are large rambling yokes far too large for us and sometimes containing a basement apartment.
One option we're looking at is to buy one and then rent out a basement or floor to a tenant. What are the tax (dis)advantages of this?
From perusing this board and elsewhere - it looks like?
1. We would only pay income tax on the rental income if it exceeds €10,000 per year
2. Even if it did exceed €10,000 - we'd be able to offset our mortgage interest against this rental income? Right? Essentially making the rental income from a basement apartment essentially tax free for us? Or am I missing something?
3. We'd also be able to offset expenses associated with repairs, etc to the basement apartment against rental income? For example, could be capitalise the cost of renovation and then depreciate it over time?
Any thoughts?