Renting your house

sirpsycho

Can someone point me in the right direction please... I'm looking for info regarding renting my house out. Here's the scenario, mortgage repayments = €800 and rental income would be €1000. There's a couple of things I have to decide, do I declare the rental income? I'm thinking I will because if I accept social cheques then no doubt the social will inform revenue. But going this path I can write off some things such as general wear and tear, repairs, etc but I'd like to hear from someone who has a house rented out and in a similar situation.

Couple of other things too, how much are the social cheques for? Do they cover the full rent?

There are a lot of things to consider but this will get me started.

Lex Luthor

sirpsycho wrote:

Can someone point me in the right direction please... I'm looking for info regarding renting my house out. Here's the scenario, mortgage repayments = €800 and rental income would be €1000. There's a couple of things I have to decide, do I declare the rental income? I'm thinking I will because if I accept social cheques then no doubt the social will inform revenue. But going this path I can write off some things such as general wear and tear, repairs, etc but I'd like to hear from someone who has a house rented out and in a similar situation.

Couple of other things too, how much are the social cheques for? Do they cover the full rent?

There are a lot of things to consider but this will get me started.

You can offset any expenses you incure while renting out the property.
Have a llok at the revenue website...there is a pdf file there called A Guide To Rental Income. All the info on that.

As for cheques, I think it depends on a number of factors...persons circumstances, etc. eg. they won't give a single mother with 1 kid full rent for a 4 bed detached....she would be entitled to a certain amount and then she works off that

sirpsycho

Here's the link for anyone interested:

http://www.revenue.ie/leaflets/it70.htm#top

Lex Luthor

sirpsycho wrote:

Here's the link for anyone interested:

http://www.revenue.ie/leaflets/it70.htm#top

that's the one
any clearer now?

you will also have to register any tenants with the PRTB.

Culchie

Your tenants will be indirectly informing Revenue anyway, as if they claim rent relief, they will be advising them of your PRSI number.

'Not declaring' your rental income is a nice way of saying 'Tax Evasion'.

It's illegal, and they (Taxman) will sooner or later catch up with you....with penalties on top. The penalties will make the original tax amount due look like chicken feed.

Don't be an idiot (used in the nicest context)
There's plenty of legitimate means (claim renovation expenses, rent a room, repairs etc....) to keep your tax bill down.

Baloney

Also don't forget stamp duty clawback if you bought this house to be your principal private residence and you are renting it out within 5 years
http://boards.ie/vbulletin/showthread.php?p=51381904#post51381904

Also the house insurance for a house that is rented out may be higher than for a normal residence. You must declare to the insurance company that the house is rented out or your insurance could be void. It is also quite tricky to get house insurance for a rented house in the first place unless you own another place that is your PPR. Don't understand why this is but I could only find one company that would do it.

And like someone above said, you must register tenancys with the PRTB.

garred

Also you have up to a years grace before being liable for CGT. If you decide after 11 months of renting your house your not covering your repayments, you are not liable for CGT if you decide to sell (but you do pay tax on the profit or the rental income for that 11 months).

Borzoi

sirpsycho wrote:

Here's the link for anyone interested:

http://www.revenue.ie/leaflets/it70.htm#top

Cheers for that;)

Victor

sirpsycho wrote:

Couple of other things too, how much are the social cheques for? Do they cover the full rent?

No, it is 13 euros per week below the rent.

See table here for maximum payments : http://www.oasis.gov.ie/housing/renting_a_flat_or_house/help_with_paying_the_rent.html