Hi folks,
First time poster but long time reader here. I'm very confused about the tax on rental income and need some help.
I purchased my house a year ago, but have only been renting it out for the past 6 months. I paid my stamp duty liability as soon as I started renting it out. I have a fixed mortgage paying both capital and interest. The house is fully rented out and I am generating a gross rental income of circa €1,250 per month. My monthly mortgage payment equates to the same as the gross monthly income.
The confusion lies in what my taxable income is. As the mortgage interest relief amounts to €8,000 p.a, can I claim this against my mortgage income? If I get the relief i.e.€133 per month, back from my mortgage provider, am I still entitled to knock the mortgage relief against the rental income? What are the allowable expenses that can be put against the rental income to reduce the tax liability?
Maybe I need to speak to an accountant but as first port of call I thought I'd ask your good selves first