rent-a-room??

[finty]

Hi,

my friend and I bought an apartment in 2006. 50:50 investment. He got married last year and moved in with his wife. I still live in the apartment.

Since then we have had 2 rooms rented and will probably go over 10,000 rent this year.

Can someone explain how we should declare this to minimise tax due. Before it was all covered by the rent a room scheme and we owed nothing.

Is it still covered by this scheme? I presume so since its still my primary residence???? or only half maybe???

I've also gone back to college full time so have no income at present.....my friend does work


If, for example we earned 15,000 in rent for 2010 what would be the best way to declare this?

 

[tenchi-ghost]

Hi

From the citizens info website.

"The total (gross) rent you get from your tenant (or tenants), which includes sums the tenant pays for food, laundry or similar goods and services, cannot exceed €10,000. If you get rental income over and above this amount, you are not entitled to the relief."

If rent is €15k you cannot claim this relief and must include the figure, less expenses, in your tax return.

Also:

"Where more than one person is entitled to benefit from the rent (for example, you and your spouse), the limit of €10,000 is divided between the individuals concerned."

This means you can only claim rent relief on income of €5,000 because you benefit from half the rent. Your friend cannot claim rent a room relief at all because he does not occupy the house.