Rental Income Tax

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dmullen

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Can anyone help me on this one?

I planning on renting out my house my mortgage is 1020 per month and plan to rent it for 950. Can I be taxed on 950 when I have to add 70 to pay mortgage?
 
dmullen said:
Can anyone help me on this one?

I planning on renting out my house my mortgage is 1020 per month and plan to rent it for 950. Can I be taxed on 950 when I have to add 70 to pay mortgage?
Click to expand...
depends on what your mortgage interest is?

in a nutshell, deduct the monthly interest payment plus any expenses from the rental income and thats what you're taxed on
 
dmullen said:
Can anyone help me on this one?

I planning on renting out my house my mortgage is 1020 per month and plan to rent it for 950. Can I be taxed on 950 when I have to add 70 to pay mortgage?
Click to expand...

Unless you have an interest only mortgage, part of your monthly payment is a repayment of capital, and part of it is interest.

You can deduct the interest element of the payment as a cost to reduce the taxable income.
 
This is a trick question !!!! right ???????????

Take a look at www.revenue.ie
You will be taxed on income less expenses (includes interest on mortgage repayment and not the repayment itself).
 
In short yes. You will be taxed on €950 less offset expenses like mortgage interest (not mortgage repayment), management fees, depreciation of furnitures, etc...
 
Last edited:
Anyone got an opinion on how to value furniture etc. in order to calculate wear & tear allowances for the rental computation.
Would it be acceptable to use the insurable value of contents and work on this figure.
 
dmullen said:
Can anyone help me on this one?

I planning on renting out my house my mortgage is 1020 per month and plan to rent it for 950. Can I be taxed on 950 when I have to add 70 to pay mortgage?
Click to expand...
If by "my house" you mean your current or former PPR then a clawback of stamp duty could also apply. Get professional advice.
 
Macer said:
Anyone got an opinion on how to value furniture etc. in order to calculate wear & tear allowances for the rental computation.
Would it be acceptable to use the insurable value of contents and work on this figure.
Click to expand...
Total cost of the furniture divided by 8. Use that figure over 8 yrs as captital expenditure.

There is a booklet on teh revenue site called 'A Guide To Rental Income' should help you out
 
I'm familiar with the rule. It more about valuing the contents I'm concerned. I acquired the house with most of the contents and these were included in the purchase price. Do I now have to go around the house and note the valuation of every item. Do I include Kitchen/build ins etc. in my calculation.
 
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