4.1 The restriction [on the deduction of interest on borrowing against gross rental] also applies where at any time on or after 23 April, 1998, a person vacates his or her principal private residence and turns it into rented accommodation.
So does that mean that anyone who bought, for example, an apartment as their PPR, then after several years bought and moved into a house, can not subsequently rent out the apartment and claim the interest against their rental income for tax purposes?
Does that mean we are liable to income tax on all the rent received ?
I'm sure lots of people have done that, rented out their PPR after moving on to a bigger place.
I feel completely ill informed, never ever realised that the rental income wasn't allowed against the mortgage interest.
That makes a huge difference, as the whole income (bar expenses) therefore is assessed for tax. Which makes renting a PPR out a bit untenable really for lots of people I'd imagine.
Am I the only person who hadn't copped on to that?
Nicola
Is there anyway around this like if i (just in theory) purchased the apt as an investment property from my husband for €150k ?
I would seriousl doubt that. I think the only way interest would be deductable against rent would be if you sold the apartment, then took out a mortgage to buy another apartment for investment purposes.
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