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Renting house - joint ownership advice

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  • 18-08-2010 7:42pm
    #1
    Hoddlestone
    Closed Accounts Posts: 23 ✭


    Hi,
    I'm looking for some help with renting my house I own it with my brother. Its a 3 bed detatched and the rent would be about €1100/month. How much tax do I/we have to pay? how do we pay it? etc...


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    #2
    ams
    Registered Users Posts: 1,443 ✭✭✭ams


    Hey there

    It depends what your expenses are. You are allowed to claim 75% of your mortgage interest as an expense and anything like repairs and maintenance, insurance, letting fees etc are 100% allowable. You can also claim capital allowances on anything like furniture etc in the house (i.e. fixtures and fittings).

    If you have a profit after this it will be taxable.

    It depends on your other earnings. If you are single and your salary is over €36,400 any income after this is taxable at 41%. You will also be liable for income levy and prsi. Any income below €36,400 is taxable at 20% so it depends on your other earnings really.

    You will need to do a return to the Revenue at the end of the tax year. For income earned in 2010 the return will have to be submitted by 31st October 2011. Check out revenue.ie for more info.

    Hope this was of help.


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    #3
    Hoddlestone
    Closed Accounts Posts: 23 ✭Hoddlestone


    Thanks for the info ams. I was talking to someone about this and something else I didnt take into account is that I loose my mortgage relief at source and need to upgrade my house insurance. Anything else I'm missing? seems like Irwin R does'nt want me to rent it.


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    #4
    ams
    Registered Users Posts: 1,443 ✭✭✭ams


    You wont get the mortgage relief at source but you will be entitled to claim 75% of the interest against the rent which is better for you (i.e. get 75% relief instead of 22.5% or whatever rate of TRS you get).

    You will need to register the tenancy with the PRTB and possibly pay the NPPR charge of €200.


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    #5
    Fol20
    Registered Users Posts: 3,624 ✭✭✭Fol20


    ams wrote: »
    You wont get the mortgage relief at source but you will be entitled to claim 75% of the interest against the rent which is better for you (i.e. get 75% relief instead of 22.5% or whatever rate of TRS you get).

    You will need to register the tenancy with the PRTB and possibly pay the NPPR charge of €200.

    Sorry about this but is there any chance you could give an example.Lets say you make 40k + 10k for letting.You have a mortgage of 200k


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    #6
    Merch
    Closed Accounts Posts: 3,327 ✭✭✭Merch


    ams wrote: »
    You wont get the mortgage relief at source but you will be entitled to claim 75% of the interest against the rent which is better for you (i.e. get 75% relief instead of 22.5% or whatever rate of TRS you get).

    You will need to register the tenancy with the PRTB and possibly pay the NPPR charge of €200.

    or just rent rooms and keep a room for yourself like the attic :)


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    #7
    ams
    Registered Users Posts: 1,443 ✭✭✭ams


    Fol20 wrote: »
    Sorry about this but is there any chance you could give an example.Lets say you make 40k + 10k for letting.You have a mortgage of 200k


    letting income 10,000

    expenses
    PRTB 70
    Repairs 400
    Insurance 300
    Mgt fee 1,000
    Interest 6,000 (say this is 75% of total interest paid in yr)

    You are taxed on the net income which is 10k - 7.7k = 2,230 taxed at 20% or 41% depending on your tax band.


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