DCC leasing affordable housing - Tax implications?

[dingoxh]

DCC have advised me that they are prepared in principle to lease my apartment which was purchased as an affordable home using shared ownership as finance.

This is in response to their recent request to property owners who are looking to lease out their property for periods of up to 10 years as they have a "stock" shortage. This will pay 85% of market value as there are management fees to be paid by them. All in all, it seems a good deal as maintenance is covered by them..

This would seem to be a big game changer with DCC as previously they wouldn't have entertained the concept of rent/leasing.

If I go for the deal, in effect one department in DCC will be paying me every month for the lease on the property but I will be paying another department in DCC the mortgage/rent.

Obviously, the leasing income is liable for tax but would anyone here have a view on whether the rental portion of my monthly repayment to DCC could be written off against my tax liability?

Appreciate this post could be placed in the tax forums too.

Any thoughts/advice would be appreciated.

 

[Society]

That's very interesting... Does it apply to all dublin local authorities? Also did you ask them for permissions to rent it out and then they suggested this option. It might be helpful for people who can't sell and end to rent out but you would be tied to them for 10 years and what happens the clawback etc.

 

[dingoxh]

That's very interesting... Does it apply to all dublin local authorities? Also did you ask them for permissions to rent it out and then they suggested this option. It might be helpful for people who can't sell and end to rent out but you would be tied to them for 10 years and what happens the clawback etc.

I had asked before about renting and was told no. I then heard an ad on the radio that they were in desperate need of rental properties and were prepared to enter into leasing agreements. I rang them and gave them my story about how the apartment was financed etc. They came back to me a few days later and said it needed to be checked with DCC legal. DCC legal have now advised that on paper it is good to go. It is now a matter of inspecting the property etc and suitability tests.


It's the tax that's the killer though. just wondering could the rental portion be written off against your liability?