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If you were letting a house through an Agency, how much tax do you pay?

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  • 08-01-2008 11:24am
    #1
    Glacier
    Closed Accounts Posts: 647 ✭✭✭


    Renting out a house, how much tax would you pay?


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    It depends on a whole lot of factors- principally of which is what your eligible costs are before calculation of your taxable rental income. If you have very high costs (for example mortgage repayments and depreciation of furniture and fittings) its entirely possible that you may not have any taxable income. You need to have an accountant sit down and study your figures.


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    #3
    Victor
    Registered Users Posts: 78,400 ✭✭✭✭Victor


    Note, you can only offset the interest for tax purposes, not the capital repayment.


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    #4
    Glacier
    Closed Accounts Posts: 647 ✭✭✭Glacier


    There is no mortgage on the house. Does that matter?

    Also, does anyone know a good agency that does this? Can you ever be sure that you get decent tenants?


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    #5
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Glacier wrote:
    There is no mortgage on the house. Does that matter?

    Also, does anyone know a good agency that does this? Can you ever be sure that you get decent tenants?

    The lack of any mortgage- means you are not paying interest on a mortgage on the house- which would be an allowable expense before calculation of your taxable rental income. It means your tax bill will likely be a lot higher than it would be for a buy-to-let landlord who has his/her house financed with a 100% mortgage- but then again it also means you are insulated from rates going up and down.

    You can never be certain of decent tenants- you have to exercise your own judgement to a certain extent and accept the outcome.....


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    #6
    Glacier
    Closed Accounts Posts: 647 ✭✭✭Glacier


    But if you did it with a reputable Agency, you should be ok, though?


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    #7
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Glacier wrote: »
    But if you did it with a reputable Agency, you should be ok, though?

    Probably- but nothing is definite in life......
    You are taking a chance one way or the other- odds are you would get someone who would take very good care of your house for you and treat it as their own- but they are strangers to you- so you should ensure that due attention is paid to choosing tenants.


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    #8
    Glacier
    Closed Accounts Posts: 647 ✭✭✭Glacier


    Has anyone actually ever done this? Renting a house while you're out of the Country?


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