Landlord paying tax....

miami2007

Hi,

this is prob a really dumb question but im wondering if i still pay tax on a property that is rented but loss making?

D3PO

miami2007 wrote: »

Hi,

this is prob a really dumb question but im wondering if i still pay tax on a property that is rented but loss making?

yes it is a dumb question. (Sorry to be blunt)

Your paying tax on the rental income not on profit.

robd

D3PO wrote: »

yes it is a dumb question. (Sorry to be blunt)

Your paying tax on the rental income not on profit.

It depends. See http://www.revenue.ie/en/tax/it/rental-income.html

You can offset 75% of interest (0% of capital repayment) and various other things against income in 2010. Many people think 75% will be reduced in this years budget. So it depends exactly how loss making it is and what you define as loss making.

bryaner

What if the landlords mortgage is interest only?

Sorry I see my answer above..

D3PO

robd wrote: »

It depends. See http://www.revenue.ie/en/tax/it/rental-income.html

You can offset 75% of interest (0% of capital repayment) and various other things against income in 2010. Many people think 75% will be reduced in this years budget. So it depends exactly how loss making it is and what you define as loss making.

my answer was a literal answer to a literal question. I'm aware of these but I would always suggest somebody whos asking the question the OP asked to use an accountant so as to ensure they file a correct tax return.

P.S OP you must file a return even if your not libel to pay tax

Victor

D3PO wrote: »

yes it is a dumb question. (Sorry to be blunt)

Your paying tax on the rental income not on profit.

Are you sure?

Tigger

of course its on income
profit is income -expendiditure so you can subtract cost of renting ie: paint carpets new attic doors but not the cost of the morgage its not expenditure its a repayment on a loan

bryaner

Tigger wrote: »

of course its on income
profit is income -expendiditure so you can subtract cost of renting ie: paint carpets new attic doors but not the cost of the morgage its not expenditure its a repayment on a loan

But what if it's an interest only loan?

3DataModem

Then 75% of mortgage can be deducted.

bryaner

3DataModem wrote: »

Then 75% of mortgage can be deducted.

Cheers

Tigger

3DataModem wrote: »

Then 75% of mortgage can be deducted.

this is correct its a sweet deal
however is you are not getting 75% of this figure in income you can't claim against other income

D3PO

3DataModem wrote: »

Then 75% of mortgage can be deducted.

Just to expand on this interest writedown only applies to landlords who are prtb registered if you don't register with the prtb you cannot write this off your tax bill

Jo King

It depends on whether the property is covered by the Residential Tenancies Act. Not all lettings are.