Rent income, but living in the granny flat

conormc1984

Hi All,

I was looking for some advice please. Currently i pay rent allowance on a 4 bed property, but i am currently living in a 2 bed (was an old garage) which is attached to the property i am paying rental income for. Would the whole property including the granny flat be classed as my sole residency therefore not need to be filing a from 12. I only got one property tax letter.

Snakeblood

conormc1984 wrote: »

Hi All,

I was looking for some advice please. Currently i pay rent allowance on a 4 bed property, but i am currently living in a 2 bed (was an old garage) which is attached to the property i am paying rental income for. Would the whole property including the granny flat be classed as my sole residency therefore not need to be filing a from 12. I only got one property tax letter.

You're renting the place? Then you're not liable for property tax, your landlord is.

Edit: Actually I don't really understand what you are saying here. Do you actually own property? Are you getting rent allowance from the government to stay in a 4 bed? Why are you in a 2 bed then? Is the 4 bed rented to someone else?

Victor

Your post is a little bit confused, but as I understnad it, you must make a return.

Do I have it right that:
1. You own the whole property?
2. You live in the granny flat?
3. You rent out the main house?
4. The tenants aren't related to you?
5. The tenants receive rent allowance?

If there is one household (e.g. you share meals, living room, etc.) then you can avail of the Rent-a-Room scheme, which means you can earn €10,000 tax free. However, you can't write off any costs, all bills are counted to the €10,000 and you must declare the income. You don't need to register with the PRTB.

If there are two households (e.g. you share little other than the garden, driveway, etc.) then you can't avail of the Rent-a-Room scheme. You need to work out you income and expenses. You can write off any costs, but to write off the mortgage interest, you must be registered with the PRTB. You can only write off 75% of the mortgage interest and none of the capital repayment. You must make a return.

conormc1984

Yes Victor that is all correct and sorry for being so vague. I was just trying to see if there was a chance i was needlessly paying Rental income as the property may have classed as my sole residency as the granny flat is an extension on the 4 bed house which is currently rented out. Seems bizarre i know but thanks for the help.

conormc1984

Sorry tittle was meant to read Rental Income