mortgage tax relief

learnerplates

How does this mortgage tax relief work?
So I buy a house for 300K, my mortgage repayment is 1500per mont. I live there, it's my sole property and I get 2 people 2 rent 2 rooms from me, I charge them 500 each.
So I have an extra income of 1000 euro per month and a mortgage repayment of 1500.

Can I get tax relief on the mortgage still?
Do I have to declare the 1000 euro as income, and then get taxed on it?

kmick

learnerplates wrote:

Can I get tax relief on the mortgage still?

Answer is yes

learnerplates wrote:

Do I have to declare the 1000 euro as income, and then get taxed on it?

Answer is yes

learnerplates

thanks for the answer.
I suppose you can't claim this mortgage relief without registering the income!
I suppose alot of livin landlords don't bother with either and just take the additional income and use it to pay the mortgage, seems like the obvious thing to do.

Moonbeam

You are entitled to trs on your morgage whether you have lodgers or not.

knighted

isnt there a rent a room scheme that u dont have to pay tax on the first 600 euro?

John Mason

You dont pay tax on the first €7,000.00 p/a rent you receive from renting a room (you might want to check that figure, it may have changed). You dont apply for mortgage relief anymore, it comes straight off the mortgage at source i.e your lending institution.

an a side note, the govenment up'ed the tax relief for first time buyer in the first 7 years of the mortgage and i got €2.00 off my mortgage, i went absolutely banana's and bought a mars bar :rolleyes:

learnerplates

so you get mortgage relief at source when you get the mortgage, presumably you only get the mortgage relief if you're renting out some rooms.
Then you rent out some rooms and you pay tax on rent income above ~7000euro per annum..
That's about the height of it is it?