B
bronco
Guest
Hello all
I recently used a traditional home mortgage as well as a Buy-to-let mortgage to finance a house purchase. The split between the 2 mortgages is roughly 50/50. I am now living in the house and renting out 3 bedrooms in a normal house-share type arrangement. I expect my rental income for the year to be about €14,000. I know that I’m entitled to €7630 tax free from the rent-a-room scheme but do I then have to pay full tax on the rest?
My other expenses from the house (buy-to-let mortgage interest, insurance, bin charges etc) are probably around €7000 too.
Does anyone know if there’s a clever way of combining the two figures to minimise my tax liability or do I have to just use the higher figure and pay tax on the rest? Would I be better switching the whole mortgage to buy-to-let so I can write off all the interest payments against my rent?
The rental guide from the revenue isn’t too clear on this subject.
Thanks alot for any advice.......
I recently used a traditional home mortgage as well as a Buy-to-let mortgage to finance a house purchase. The split between the 2 mortgages is roughly 50/50. I am now living in the house and renting out 3 bedrooms in a normal house-share type arrangement. I expect my rental income for the year to be about €14,000. I know that I’m entitled to €7630 tax free from the rent-a-room scheme but do I then have to pay full tax on the rest?
My other expenses from the house (buy-to-let mortgage interest, insurance, bin charges etc) are probably around €7000 too.
Does anyone know if there’s a clever way of combining the two figures to minimise my tax liability or do I have to just use the higher figure and pay tax on the rest? Would I be better switching the whole mortgage to buy-to-let so I can write off all the interest payments against my rent?
The rental guide from the revenue isn’t too clear on this subject.
Thanks alot for any advice.......