There are several other discussions over the internet, various tax sites, that Airbnb income is considered trading income
due to its short term let nature and it does NOT fall under either
i) regular long term renting where the mortgage interest is allowable.
and if you set-up a company, then I assume you would have to sell the property to the company, it take over the loan, as not sure you could claim that the company was entitled to the rent when it doesn't own the asset.
Thanks for the company asset analysis, I wouldn't plan on anything complicated like that or involving solicitors or banks.
Enrst Young : "In addition, in order to claim a deduction for mortgage interest, the host must ensure they are compliant with the requirements of the Residential Tenancies Act in relation to the registration of a tenancy with the Private Residential Tenancies Board (‘PRTB’). The PRTB registration fee itself is also a deductible expense."
This is not realistic with 3 tenants per week at 90 euro per registration so I don't think mortgage interest
in our case is worth worrying about as its around 75% 100 per month as we are on a Tracker with around 110k remaining.
Need a simple way to get the maximum at the 20% employee tax rate up to 33k.
Enrst Young : "In addition, in order to claim a deduction for mortgage interest, the host must ensure they are compliant with the requirements of the Residential Tenancies Act in relation to the registration of a tenancy with the Private Residential Tenancies Board (‘PRTB’). The PRTB registration fee itself is also a deductible expense."
Re TmcGibney,
a question was asked -
Do we have to setup a limited company for this ? and "employ" my wife ?
so if he wanted to set-up a company and divert the rental income to that Company, and that company employ his wife, how could it be done
I don't think I was mis-leading anyone, as I did say that specialist advice was required as a lot to consider.
If my wife is taxed on the profits as you say (lets say 35k) and she has no other income as per the title of this discussion, will
she get the first x thousand at 20% rate ? As if its 40% on all the profits surely its a non starter......
and is she "employed" or will we just be filling out a Form 12 tax return for her/for this business (the following year) ?
As an aside there's obviously a joint mortgage on the property, maybe ownership doesnt matter
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