Mortgage Relief

Hi...one more question...

I had a mortgage on a property for 18 months. The property was rented out, but had to cover the shortfall between the rent and the mortgage repayment. Would I be entitled to mortgage relief?

Thanks

What do you mean?

If there was a shortfall, you presumably made a loss and can claim for this.

You can only claim relief on interest actually paid.

The rent didn't fully cover the morgage re-payment so I had to supplement it. So I can claim on the amount I had to pay? That correct?

Was this an investment property? If so then the relief is deducted as an expense against rental income, and if left with a loss, this is carried forward to the following year.

If this was your PPR which you subsequently rented out, you may be talking about TRS?? Please clarify.

Sorry...can you clarify PPR and TRS?

PPR=Principle Private Residence
TRS=Tax Relief at Source

Neither are relevant when discussing an investment property.

OK, thanks for that!

DeeJay said:

Sorry...can you clarify PPR and TRS?

Click to expand...

Sorry DeeJay it's as CCOVCH says. I get used to using the abbreviation and forget that people don't know what I'm talking about!!

[broken link removed] is only available on your PPR (principal private residence as stated above so you must be living there as your main home). Full(er) details on TRS should be listed on that link, should you wish to investigate, but of no benefit to you with an investment property (again, as already pointed out by Ccovich). As liteweight pointed out, the loss can be carried forward and offset against future profits. You should investigate fully the information on the Revenue (www.revenue.ie) and Oasis () sites regarding investment properties to understand any potential tax implications.
(also, lots of information available on investment properties through AAM)

Just to reiterate, you cant claim tax relief against rental income on mortgage repayments, you can only claim the actual interest portion as an expense against rental income.