Tax on Rental Income

hi again,

I kinda thought that i wouldnt be able to claim the interest on this until my apartment was rented out but i do know that i can claim the interest as an expense from the date it was rented out. i think this is correct anyway.

what makes you think that i have to pay 41% interest on that money i invested in an ordinary current account at the time i borrowed the money i paid 20% dirt tax on this money when i took it out of the bank for when i needed it to pay off for my apartment

For the year 2007 as far as i know you should have paid tax on the 20th of May of this year and that you're meant to get a tax certificate and an official receipt book from the Hungarian tax authority. This is what i have been told.
This tax certificate is meant to be put on youre form 12 for the irish revenue by october 31st declaring that you have paid 25% tax unless you have bought as a company as opposed to a private individual

i hope this helps

seánieboy said:

I kinda thought that i wouldnt be able to claim the interest on this until my apartment was rented out but i do know that i can claim the interest as an expense from the date it was rented out. i think this is correct anyway.

what makes you think that i have to pay 41% interest on that money i invested in an ordinary current account at the time i borrowed the money i paid 20% dirt tax on this money when i took it out of the bank for when i needed it to pay off for my apartment

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Thanks seanie, I'll check it out with the accountant.

sorry, I misunderstood you, thats correct all mortgage interest is deductable. Not sure why I thought you were referring to deposit interest

well i did invest the money that i borrowed for a few months and received deposit interest on this but i paid dirt of 20% on

but i think that the interest that i paid on my loan is non deductable until such time as the apartment was actually rented out.

if you have anymore info regarding taxation in Hungary and how to submit it on form 12 give me a shout. all the best for now

seánieboy said:

but i think that the interest that i paid on my loan is non deductable until such time as the apartment was actually rented out.

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correct.

If you only rented the apartment for 8 months of the 12; then you can deduct 8/12th's of the mortgage interest, and 8/12th's of the furniture etc etc etc.