Costs of Renting My 3 bed semi

AnthonyK7

Hi,

I was wondering if anyone had any info on what the full cost will be for me to rent my home.

I understand that after a year I am subject to capital gains tax & I instantly lose Mortgage tax relief, I also heard about having to pay a membership fee to a association.

If anyone has any correct information , please post.

Thanks ,

Anthony

gibo_ie

AnthonyK7 wrote: »

Hi,

I was wondering if anyone had any info on what the full cost will be for me to rent my home.

I understand that after a year I am subject to capital gains tax & I instantly lose Mortgage tax relief, I also heard about having to pay a membership fee to a association.

If anyone has any correct information , please post.

Thanks ,

Anthony

Hi Anthony,
With regards to tax, there is no capital gains tax in the equation here. You are subject to standard taxation rates as taxable income on a self assessed basis from day 1 !!!! You need to keep track of all expenses paid in and out, i.e. Rent paid to you and costs paid by you for things like insurance, furniture (written off over 7 years), maintenance costs etc.. (a good accountant will charge you a very small amount each year to keep this right)
You also have to register each tenancy (in a 12 month period) with the PRTB (www.prtb.ie) and this costs €70. As this will now be a second house for you, you will also have to pay a €200 yearly fee to the NPPR (Non-Principal Primary Residence) board (www.nppr.ie)
The best thing is to keep track of all costs tightly, the amount of tax you will have to pay at the end of the year (technically by the 31st October in the following year) will depend on your records. This may be very small if you pay out a lot on maintenance, interest paid to bank on loan etc...
And yes you must declare it as a second home so you will loose your mortgage relief at source...
hope this helps.

athtrasna

Have a look at the bar near the top of the page, there's thing called Search. Saves people posting the same stuff over and over again

Here's a few threads for starters

http://boards.ie/vbulletin/showthread.php?t=2055891366&highlight=rent+prtb

http://boards.ie/vbulletin/showthread.php?t=2055820073&highlight=rent+prtb

http://boards.ie/vbulletin/showthread.php?t=2055698866&highlight=rent+prtb

athtrasna

gibo_ie wrote: »

Hi Anthony,
With regards to tax, there is no capital gains tax in the equation here.

This comes into effect if you want to sell later on.

am i bovvered

75% of the interest in your mortgage is allowed to be written off as an expense.
Register all tenants with the PRTB.
Register house NPPR
You may be liable for a clawback of stamp duty.
http://www.landlord.ie is quite handy.
It is essential that you are professional, run it as a business and if you have good tenants.... look after them !

3DataModem

am i bovvered wrote: »

It is essential that you are professional, run it as a business and if you have good tenants.... look after them !

Best advice in this thread.

Also as a guidline - calculate how much rent you think you'll get in a year. Then deduct about 20%. This is what you can expect to get BEFORE income tax.

Also watch out for Stamp Duty clawback. One day you WILL have to pay this, even if you try and swerve it now.

AnthonyK7

Thank you all for the info, the guy with the search request, quit trollling.

I wanted up to date info & that was supplied.

Thank you all , I really appreciate it.

Anthony

jelly&icecream

You should also inform your insurance company of the change from owner occupier to rented. Insurance will be more expensive.

athtrasna

AnthonyK7 wrote: »

Thank you all for the info, the guy with the search request, quit trollling.

I wanted up to date info & that was supplied.

Thank you all , I really appreciate it.

Anthony

TROLLING - WTF!!

One of the the threads is I suggested is less than a week old. The others all this year so pretty recent. And they all tell you exactly what people have posted here in this thread.

The search facility isn't there for decoration it's to save the boards getting clogged up with the same query over and over and over again :rolleyes:

Treehouse72

AnthonyK7 wrote: »

Thank you all for the info, the guy with the search request, quit trollling.

I wanted up to date info & that was supplied.

Thank you all , I really appreciate it.

Anthony

A truly obnoxious attitude towards someone who went to the effort to find 3 links for you. Get over yourself.

am i bovvered

you also need to pay the income levy on all rent recieved before you do anything.

Victor

athtrasna wrote: »

TROLLING - WTF!!

OK folks, relax.

athtrasna

Victor wrote: »

OK folks, relax.

Easy to say when you're not the one being called a troll