Move out of own house but rent another

W

wheeler

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All - I am thinking of moving out of my house to be nearer to my job. This will mean renting out my own house to others but then renting a house from another.

I will be paying tax on the rental income on my own house as well as the rent on the other. With this in mind:


Has anyone else done this and how did it work out financially through gaining rent allowance and paying tax on rental income?

I don't want to be any worse off than I am now so I'm looking at all the options to making the best of paying a mortgage and rent.
 
I presume the OP means the rent tax credit? The max tax credit is €400 (based on paying rent of €2k or more) so the query is whether OP will have a tax liability as the rented property will be liable to tax on the rental income but the tax credit can be claimed for the property OP rents.
OP - you need to consider a few things - the tax liability on the rental income is on the full amount of the rent received (not the amount left over after paying the mortgage as people sometimes assume) There is of course a deduction for allowable interest paid on the mortgage.
TRS and Rent tax credit cannot both be claimed. If you currently get TRS on the mortgage where you are then you need to tell Revenue you are renting it out. TRS won't be given once rented out and you can then claim rent tax credit. Any monetary loss of TRS needs to be factored into your decision.
It's not possible to give more exact advice to you without having the figures.
 
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