Newly Married and TRS/Renting Queries

Hi There,

Just recently married and am moving into "her" house. Have filled out the TRS forms to cancel it on mine and move it to hers. However will we loose out etc. We dont fully understand.

Also we are going to rent my house, but dont understand the tax implecations. I understand CGT. However don't understand the tax on rent. For instance, say my mortgage is 700 a month and can only rent for 600 a month. How will that affect us.

Thanks,

You need to have owned the house you are renting for 2 years or there may be a stamp duty clawback.
You only claim the mortgage interest as an expense, not the capital element of the repayments and you need to register with the prtb to claim this.

Ya own the house since april 2006 so safe there. But we dont understand how the TRS works for married couples as opposed to two single people. Will we still be entitled to the same interest relief (say hers was 130 and my is 200) as before i.e 330 or will that figure be reduced?

And am currently undergoing the register with the PRTB. However with I be liable for "Income Tax" on the rent or will my interest and other expences nulify that.

You should contact your tax office to inform them of your change of tax status (are you planning on being jointly assessed?). On the TRS issue, this was discussed here http://www.askaboutmoney.com/showthread.php?p=540957

For the rental property you will be liable to income tax on any profit you make, but you can deduct any mortgage interest, letting expenses, wear & tear etc. so it is unlikely you will have a big tax liability for the first few years. You should search AAM for information on going interest-only on the investment property.

Remember even if you don't make a profit on the rental income you will still have to make a tax return under the self- assessment sytem. Read the article below.
http://www.irishlandlord.com/index.aspx?page=infocentre_article_view&id=8