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Rental Tax

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  • 10-01-2008 5:10pm
    #1
    Dame Edna
    Closed Accounts Posts: 7 ✭


    Hi All

    I hope you can help!I own a house down the country with no mortgage and I moved to Dublin and I had to rent due to mad house prices. I have my house in the country rented out for 750 a month and the rent I pay in Dublin is 1000. Do I still have to pay tax even though the rent I pay is more than what I get in rent from my house??


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


    Yes, is the short and simple answer- you cannot offset the rent you are paying in Dublin against your rental income down the country.

    First of all- you have to register your house down the country with the PRTB, and make an annual tax return for the income you get. Despite the fact that you have no mortgage on the house- it is still possible that you may have costs you can offset against some of the rental income before determination of your taxable rental income (e.g. you can write down the value of furniture and fixtures over a 5 year period (including carpets etc) (but you would need original receipts etc for the Revenue Commissioners to do this). Any agency fees, PRTB fees etc- would also be deductable.

    Re: your house you are renting in Dublin- you can claim a tax credit (worth about 300 per year) towards paying your rent (this is a totally different transaction and seperate from renting out your own house down the country). Unfortunately thats the extent of what you can claim :(

    S.


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    #3
    Ideo
    Registered Users Posts: 1,618 ✭✭✭Ideo


    Dame Edna wrote: »
    Hi All

    I hope you can help!I own a house down the country with no mortgage and I moved to Dublin and I had to rent due to mad house prices. I have my house in the country rented out for 750 a month and the rent I pay in Dublin is 1000. Do I still have to pay tax even though the rent I pay is more than what I get in rent from my house??

    It may be worth your while reducing the rent you charge to 625 per month and pay no tax on the income altogether. If your on the higher rate of tax you could save a few grand in tax


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    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Ideo wrote:
    It may be worth your while reducing the rent you charge to 625 per month and pay no tax on the income altogether. If your on the higher rate of tax you could save a few grand in tax

    This is only the case under the rent-a-room scheme. If the OP is living in Dublin (as they have said they are) and renting out their own home down the country- they are not entitled to use the rent-a-room scheme, as their home down the country is no longer their PPR.

    Shane


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    #5
    Ideo
    Registered Users Posts: 1,618 ✭✭✭Ideo


    smccarrick wrote: »
    This is only the case under the rent-a-room scheme. If the OP is living in Dublin (as they have said they are) and renting out their own home down the country- they are not entitled to use the rent-a-room scheme, as their home down the country is no longer their PPR.

    Shane

    Yeah your right, I kinda neglected the facts :o


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