Section 23 rental income

[tui0hcg]

I bought a house almost 8 years ago with section 23 tax relief included for urban renewal, I have rented this house since buying it and rent it only for the same sum as my mortgage. Annual rent is approx €9000 which just covers my repayments. I believe that this type of income is tax free due to the section 23 scheme, however I am a little bemused as to exactly what section 23 means to me and my tax issues, do I get any further benefits from section 23 or can someone explain the ins and outs of what this relief means to me.

 

[bazermc]

basically you can offset the cost of the property less the site cost against your rental income thereby creating a large rental loss in your first year of renting. Those losses may only be carried forward against future rental profits earned thereby reducing your rental profits. rental profits are calculated as rental income less any interest, insurance mgt charges etc not mortgage repayments. these rental losses are only useful if you have a lot of rental income so they are only of benefit to large property investors. is that any helpfull to you?