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Renting my place

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  • 05-05-2010 11:44am
    #1
    airtommy
    Closed Accounts Posts: 13 ✭


    Hi

    Im looking to rent out my rooms in my place but i was wondering if someone could help me work out how much tax i would be paying. I would be making

    - €2300 from the rooms
    - I have to pay maintenance €1200 for the estate
    - monthly morgage €2300

    If you can give me a rough idea how much tax i would pay that would be great. Im not sure of allowances...ect

    Thanks

    T


Comments

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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    where is the house and how big is it ?

    my gut is your massively over optimistic on the rent you think your going to get, but of course I cant back that up without more detail


  • Options
    #3
    airtommy
    Closed Accounts Posts: 13 ✭airtommy


    Thanks for the reply. I have been offered this already so Im just trying to figure out if its worth it tax wise.


  • Options
    #4
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    very cloak and dagger you wont even tell us how big or where it is. Come on indulge me.

    Anyway a few top line numbers for you

    1) Rental income taxable @ 41%
    2) NPPR fee of €200 per year due (cannot be deducted for tax purposes)
    3) PRTB fees for each tennancy needed (tax deductable)

    Other deductables
    • 75% of mortgage interest is also deductable
    • Furrniture deprecition can be written off over 8 years or 12.5% per year
    • Rates are deductable, i.e water rates when introduced also management fees if applicable
    • advertising or EA fees are deductable
    when selling the property you will be lible for CGT @ 20% on any profit made from purchase to sale price, also your potentially lible for investor mortgage interest rates, depending on your contract, also possible stamp duty clawbacks, depends on the situation

    bottom line is you will need to lay the full detail out to an accountant (also tax deductable) nobody on here can give you all the detial you need without all the details.

    also rule of thumb would be to account for unoccupancy. General rule of thumb is to expect 10 - 11 months occupancy per year. Personally Id be basing my figures of 10 month occupancy cycle.


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