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Will I lose my MIR?

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  • 31-12-2012 1:00pm
    #1
    Midnight Sundance
    Registered Users Posts: 798 ✭✭✭


    I am considering renting out a room in my home. I'm still unsure if I will or not because I'm afraid ill lose my mortgage interest relief or end up with a tax bill at the end of it. ?
    I know from looking online that I can rent out a room up to 10,000 e. do I have to declare to anyone about renting out the room? Do I have to register as a landlord or do I have any obligations to declare if I rent out the room?
    Apologies if this has been covered before.
    Many thanks


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    #2
    snubbleste
    Banned (with Prison Access) Posts: 31,117 ✭✭✭✭snubbleste


    No.
    You have to declare any income to Revenue.


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    #3
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Midnight Sundance wrote: »
    I am considering renting out a room in my home. I'm still unsure if I will or not because I'm afraid ill lose my mortgage interest relief or end up with a tax bill at the end of it. ?
    It's not a tenancy scenario - you will be letting out the room under 'license agreement'. The house remains your PPR.
    In relation to tax, you've already identified the ability to earn €10k/year tax free under the rent a room scheme - so therefore, it's not an issue. As snubbleste says, you should declare any income to revenue each year. However, whilst I did this a couple of years, I have not bothered doing so in the last three. I would suspect that many don't bother. If your PAYE with no other revenue streams, then I can't imagine revenue bothering to take you to task for not declaring what is in any event tax free earnings (assuming you're staying under the €10k threshold and the property remains your PPR). However, that is NOT a recommendation.


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