Rental income on a property/tax exposure

POK321

If I rent out my property and the rental does not cover the mortgage am I exposed to any tax? I am currently out of the 7 yr mortgage interest relief period so will have any tax bill to pay at the end of the year? I guess not as I will effectively be making a loss.

Mortgage is €2000 potential rental is €1200 so untimely a loss of €800

killers1

POK321 wrote: »

If I rent out my property and the rental does not cover the mortgage am I exposed to any tax? I am currently out of the 7 yr mortgage interest relief period so will have any tax bill to pay at the end of the year? I guess not as I will effectively be making a loss.

Mortgage is €2000 potential rental is €1200 so untimely a loss of €800

The following link explains all you need to know. You cannot offset your mortgage repayment against the rental income, you can only offset 75% of the mortgage interest paid against the rental income. You can also offset some expenses & maintenance in relation to the property. As you have owned the property for 7 years there is no clawback on any potential stamp duty that would have arose had you purchased the property as a family home but then let it out within a certain timeframe.

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section4

NIMAN

All rental income is taxable, whether you are covering your mortgage or not.