Mortgage interest relief on Invstment property

E

emerf

Registered User
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hi
Can some one please confirm if all the bank interest on a mortgage on an investment property is written off against the rental income? For example if I get rent of 8000 and the bank interest is 8500 then is it correct that i will be deemed not to have earned any income from the rent?
thanks
 
Yes, remember it is the interest only not the total mortgage repayment that is allowed as an expense. There are other expenses that are allowed. See [broken link removed] Losses can be carried forward and offset against future profit
 
Yes, but only if you file a tax return stating you've made a loss / no income. And certainly if you want to carry forward your losses you definately have to make a return explicitly stating your losses.

Also, you need to be registered with the PRTB to offset ANY interest against rental income. If you're not registered then 100% of your income is liable at your marginal rate of income tax.
 
So if I buy a property and say the mortgage repayments are EUR 1,300 and I choose to rent out the property for EUR 1,200 ie making no profit/income. Am I exempt from paying tax on this rent ? And do I still qualify for mortgage interest relief as if I were an owner occupier ?
 
?? To my eyes the 2 responses, and the links contained therein, to the original question answer this topic. I'm not sure how your question is any different or what answers you expect without people simply repeating themselves.
 
Teknon said:
So if I buy a property and say the mortgage repayments are EUR 1,300 and I choose to rent out the property for EUR 1,200 ie making no profit/income.
Am I exempt from paying tax on this rent? And do I still qualify for mortgage interest relief as if I were an owner occupier?
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Mortgage interest can be deducted, not the total repayments. If you are making a loss then you have no tax liability. You must register the property with the ptrb and complete a tax return showing your loss. No, you claim the mortgage interest as an expense in your rental accounts
 
If you register late with PRTB can you back date the relief?
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afaia, you can pay a late fee €140. Don't know how far back you can go using this. Check with PRTB.
 
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