Hi all, I brought a 2nd property last December 06, and rented out my first property last March 07. When do I need to pay tax on rental income and also the i have a interest only mortgage on the rented property. The property was re-mortgaged to raise finance to get second property, is tax calculated on interest on original mortgage or can all the interest only mortgage be deducted.
when to pay tax.
- Thread starter scati
- Start date
You have quite a bit of time yet: you won't have to declare your 2007 rental income until 2008, when you must pay and file by 31 October.
Original mortgage only, I'm afraid, in answer to your other question.
Still, as ClubMan suggests, you should probably seek independent advice on this. Most people will save the cost of the advice / consultations through the reduction in their tax liabilities, and / or the reassurance that Revenue's not going to come knocking either!... all this, and it's tax deductible too
Original mortgage only, I'm afraid, in answer to your other question.
Still, as ClubMan suggests, you should probably seek independent advice on this. Most people will save the cost of the advice / consultations through the reduction in their tax liabilities, and / or the reassurance that Revenue's not going to come knocking either!... all this, and it's tax deductible too
Hi Scati,
I'm not claiming to be a brightspark but I would hazard a guess at your questions;
1. You're probably due to pay tax in at the end of Oct 07 on all income received for the full year of 2006.
2. When calculating the tax deductable interest paid you'll probably have to apply a time-based formula in relation to when your previous property ceased to be your PPR (principal private residence) etc.
I'm totally guessing no.2 it's been a long time since I read up on tax. If you look up revenue.ie in relation to PPRs you might find the answer. Sometimes you need to know what you're looking for. Otherwise you could deduct the full interest amount.
Hopefully some brightspark will help as I would be interested in the answer
I'm not claiming to be a brightspark but I would hazard a guess at your questions;
1. You're probably due to pay tax in at the end of Oct 07 on all income received for the full year of 2006.
2. When calculating the tax deductable interest paid you'll probably have to apply a time-based formula in relation to when your previous property ceased to be your PPR (principal private residence) etc.
I'm totally guessing no.2 it's been a long time since I read up on tax. If you look up revenue.ie in relation to PPRs you might find the answer. Sometimes you need to know what you're looking for. Otherwise you could deduct the full interest amount.
Hopefully some brightspark will help as I would be interested in the answer