Tax on Rental income

M

Maxblack

Guest
Hi

I am thinking of moving abroad and using a career break as a safety net incase I want to move home. My question relates to taxation on my rental income while I am abroad.

I own a property where the rental income is around 1400 per month. My current mortgage monthly payments are around 800 or so based on 160k borrowed over 30 years or so. I understand that tax on rental income is 20% if you are resident outside the country so will I be paying 20% on the 1400 or can I write some of this tax off against the mortgage ?

Any advice welcome . . .
 
The Property Investment FAQ and key posts cover the basics including what expenses can be offset against rental income when doing your tax return, tax that must be withheld on rent payable to absentee landlords etc. You should probably consider getting professional advice too.
 
If you are taking a career break then all you would need is a letter from your employer stating this and I think you are covered as being still domiciled in Ireland once there is an expectation that you will resume your original job. (subject to correction)

sorry crossed with clubman's post
 
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I don't understand. How will that help? If you mean that they can retain their owner occupier status then I very much doubt it.
 
ClubMan said:
I don't understand. How will that help? If you mean that they can retain their owner occupier status then I very much doubt it.
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No, its a rental property not PPR, according to my reading of OP's initial submission.
 
I read the Property Investment FAQ and its useful information if your resident in Ireland but I wonder are those deductions for mortage interest etc deductable if you are not living in the country?

If the tennants are supposed to pay the tax at 20% I can't see how you could deduct mortage interest etc from this.
 
mathepac said:
No, its a rental property not PPR, according to my reading of OP's initial submission.
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So what is the relevance of getting a letter from the employer about the career break? I just don't understand your point - sorry...
 
Maxblack said:
If the tennants are supposed to pay the tax at 20% I can't see how you could deduct mortage interest etc from this.
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Note that the 20% withheld may not be the full extent of the landlord's tax liability on rental income!
 
ClubMan said:
Note that the 20% withheld may not be the full extent of the landlord's tax liability on rental income!
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Forget the letter from employer, career break etc. That seems to be confusing the issue..I am interested in what deductions I can take on tax liability, are you saying I could pay more than 20%?
 
I have no idea since I don't know the full details of your overall situation.
 
ClubMan said:
So what is the relevance of getting a letter from the employer about the career break? I just don't understand your point - sorry...
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I think the point is that the OP can then continue to be treated as a resident landlord for tax purposes rather than a non-resident landlord.
 
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