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tax payable by a landlord

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  • 18-10-2010 7:18pm
    #1
    kieran75
    Registered Users Posts: 40 ✭


    hi,

    im trying to get a rough idea what tax i would owe for renting my house to someone in receipt of rent allowance.

    lets say they pay me rent of 500 per month and the mortgage on the house is 600 per month...obviously im down money here...would i have pay to pay tax on the full 500 or can i use the mortgage against it.

    ive checked google and cant see anything clear on this from the landlords point of view.

    thanks...


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    #2
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    You pay tax on the income, but there is an allowance for mortgage interest. You can also claim depreciation on fixtures and fittings. But you also pay the €200 a year non PPR fee and registration of tenancy fee to the prtb.

    If you pay management fees for the apartment you can also write those off against your tax liability.

    Check out www.irishlandlord.com for more precise advice


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    #3
    bryaner
    Registered Users Posts: 3,181 ✭✭✭bryaner


    Once your not making a profit on the rent you don't pay tax.


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    #4
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    bryaner wrote: »
    Once your not making a profit on the rent you don't pay tax.

    Profit is calculated as income minus allowances and deductions...not rent minus mortgage...which is an important distinction to make. Just because your mortgage is more than your rent it doesn't automatically mean you're not making a taxable profit.


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    #5
    bryaner
    Registered Users Posts: 3,181 ✭✭✭bryaner


    athtrasna wrote: »
    Profit is calculated as income minus allowances and deductions...not rent minus mortgage...which is an important distinction to make. Just because your mortgage is more than your rent it doesn't automatically mean you're not making a taxable profit.

    Fair enough

    A lad I know that has a few property's tells me he pays no tax because he makes no profit on the rent, thats all I had to go on.


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    #6
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    bryaner wrote: »
    Once your not making a profit on the rent you don't pay tax.

    op dont listen to this post. Its ill informed and quite frankly wrong.

    anyway back to the original question forget what your mortgage payement is its irrelevent.

    if you were getting 500 in rent per month the only part of your mortgage thats a consideration for you is the interest component as you can write 75% of the interest off.

    So lets say your mortgage was 600 per month and 300 of that was interest. Then you could write 225 euro off against the income.

    that would make your taxable income 275 euro.

    Of course thats a very simplistic view doesnt take into account any other expenses etc.


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