Mortgage Interest Relief Query

footfall789

Hi am trying to find a bit of information about the old Mortgage Interest relief pre 2009 .

If you bought house (A) in 1997(Mortgage of €200,000). You then sell House (A) in 2002 for €200,000 and buy House (B) for €420,000 in same year (new Mortgage of €220,000). Then if you sell House (B) in 2007 for €400,000 and buy House (C) for €660,000 in same year(new mortgage for €260,000). All houses were Main Residences when I owned them

I know when buying House B & C you would be seen as a Non First Time Buyer , and that you would only get TRS for 7 years .

So can you claim a max of 7 years for properties (B) and (C) combined i.e would the TRS run out in 2009 even though you bought a new property in 2007 with a new mortgage of €260,000.

Regards,

Regards,

riclad

IF you are looking for mortage interest tax relief ,refund ,
you can only claim a refund for the last 4 years.
SO anything pre 2009 is irrelevant .
Mortgage interest relief is x amount per year, for a single person,
double x for a married couple.
The price of the house doe,snt really matter.
SAY you put in a claim to the tax office monday,for a refund
you can only claim back for 4 years from monday.
I think the 7 years would start from the 1st house you claimed trs on.

IF it was your principal private residence,for tax purposes.

footfall789

Hi Brill thanks for that .

So for a Non First time buyer , Mortgage Interest Relieve runs for 7 years consecutively no matter how many PPR houses you buy . So if you bought your second house in 2002 then it would run out in 2009 even though you bought a new house with a new mortgage in 2007.

Is this what you are saying

Regards,

riclad

DO a search on revenue ie, first time buyer , 7 years.
MY friend claimed for 4 years refund, in 2010.
FTB bought the house in 2003.
I think you can only claim 7 years, from the first time you claimed trs .
You,ll need to go to the bank and get a letter i, paid interest of x amount on house ,from 2009 .mortgage no, bank account info etc
I think you can download the form from www.revenue.ie ,
trs refund form.

NO, i,m saying you can claim trs for 7 years ,
from the first day you claimed it,
IF you never claimed trs,
then fill in the form, ASAP,
take a photo of the filled in form.
CLAIM for 4 years trs .
Look on revenue ie trs refund faq .
You might get less than 4 years refund ,
as TRS tax credits was stopped over a year ago.

IF you have all the info ,fill on the form today.

i downloaded form and sent it off to tax office.
for my friend in 2010.


You may be able to fill it out online .

Eldarion

Not sure what you're really asking about here but just to clarify one all important point. You can only make claims against your taxes for the past 4 years. Anything prior to 2010 is now completely irrelevant and cannot be recovered.

footfall789

Ok, ignoring the 2011/12 budget giving extra relief to 2017 and number of years I can claim gainst taxes . What I would like to know is ,

if you bought first PPR house in Year 1 and then your second PPR house in year 6 , how many years would you have left for Mortgage Relief ie would it finish in year 7 or year 13.

riclad

start date and entitlement to relief
Your entitlement to mortgage interest relief depends on the relevant start date, as follows:

If you started paying the mortgage in 2003 or earlier, your entitlement expired in 2009.
For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017.
Mortgages taken out after 31 December 2012 do not qualify for mortgage interest relief.

i think this answers your question,


http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html


SO it depends on When YOU made the first payment on the mortgage.

RE any tax refunds you can only claim back for 4 years from the date
you send in your claim.

Landlords can still claim 75 per cent mortgage interest as a credit
against income earned on the rental property.

The_Conductor

footfall789 wrote: »

Hi am trying to find a bit of information about the old Mortgage Interest relief pre 2009 .

If you bought house (A) in 1997(Mortgage of €200,000). You then sell House (A) in 2002 for €200,000 and buy House (B) for €420,000 in same year (new Mortgage of €220,000). Then if you sell House (B) in 2007 for €400,000 and buy House (C) for €660,000 in same year(new mortgage for €260,000). All houses were Main Residences when I owned them

Each sale and purchase, closed off a mortgage, and commenced a new mortgage.

footfall789 wrote: »

I know when buying House B & C you would be seen as a Non First Time Buyer , and that you would only get TRS for 7 years .

Correct. However- its on a per mortgage basis. Aka- if you had held onto House B for the duration (7 years) before selling it, and then bought House C- you would have a new 7 years of MIR on the mortgage associated with House C, despite the fact that you have exhausted the MIR on House B.

footfall789 wrote: »

So can you claim a max of 7 years for properties (B) and (C) combined i.e would the TRS run out in 2009 even though you bought a new property in 2007 with a new mortgage of €260,000.

Regards,

Regards,

No.
Each house sale closes off a mortgage- and each subsequent purchase starts a new mortgage. You could in theory have claimed MIR forever (obviously the scheme is closing off with the 2017 deadline)- by buying and selling houses within the 7 year window.

The MIR is associated with the mortgage- not with the property- and each sale closes off one mortgage, and each subsequent purchase, starts a new discrete mortgage- and the 7 years of MIR starts all-over again.


I hope this helps.

Revenue have a very good explanation of all of this here

footfall789

Hi, what you said is what I was looking for as it did not seem to be mentioned any where .

I always though that if you bought your first PPR House with a mortgage then you would a first time buyer and the 7 years start , then if you sold your first house and bought a second two years later then you would be a Non First time buyer and you would have 5 years left of Mortgage Relief.

So if you were a Non first time Buyer and bought your third PPR house in 2007(with a mortgage of €660,00) you should get Mortgage interest relief (for a non First time buyer)up until 2014, excluding what was said in the budget of 2012 , is this correct.

Regards

The_Conductor

Correct.

footfall789

Hi , Conductor , thanks for that .

I know I am going off in a Tangent here but , if the Wife's name is not on the Deeds of the house but is on the Mortgage and Paying it , could they still have claimed TRS ( this house is their PPR ).

Regards.

riclad

I think if you are married you,ll get 2x times trs,eg single person,s trs x 2 ,
if your wifes name is on the mortgage.
You don,t get the deeds till the mortgage is paid off anyway.

The_Conductor

footfall789 wrote: »

Hi , Conductor , thanks for that .

I know I am going off in a Tangent here but , if the Wife's name is not on the Deeds of the house but is on the Mortgage and Paying it , could they still have claimed TRS ( this house is their PPR ).

Regards.

We're getting quite technical here.
You have to declare any marriage or legal arrangement that may have a call on an asset that is mortgaged, to the lender. So- the bank are accepting that the wife has a call on the asset. Whether or not her name is on the mortgage- isn't particularly relevant. Both parties (husband and wife) can claim the TRS (even on the same form)- regardless of the fact that only one of them is on the mortgage.

The only stipulation is- it has to be their PPR. Also- no loans taken out after 1.01.2012 qualify- and the whole scheme winds down on the 31.12.2017

The_Conductor

Also- the TRS is on interest actually paid- this is new- so if you're in an arrangement with your lender to make reduced payments, or have had a portion of your loan parked- the TRS, which hitherto has been calculated on the interest applied to the loan account- going forward is calculated on that portion of the interest actually paid by the borrower.

If you're paying your loan in full, in schedule- there is no change- if you have entered arrangements with your lender- your TRS will be reduced by a commensurate amount (aka- Revenue will not reimburse you for interest you have not in fact paid- as has been the case hitherto).

footfall789

Hi All, great info thanks

If bought a new property and drew down on the mortgage for that new property to complete the sale while living in the old one do you have to move in to the new one straight away in order for it to be treated as your PPR and to begin a new TRS again. Can you just inform the Revenue that your new house is your PPR even though you may be still living in your old property because new property is not livable as of yet e,g no fixtures or fittings.

Regards.

riclad

i don,t think any NEW applications are being accepted for TRS .
Unless you are applying for a refund from previous years.
OR you are a landlord who wishes to claim 75 per cent interest on a loan, as an expense against rental income ,on a investment property.
LETS say you have 3 houses ,
your ppr is where you live, and send tax returns from.
See www.revenue.ie ,search ppr for more detailed info.
The revenue do necessarily expect you to be there 365 days a year.
YOUR ppr might be house 1 ,you might spend 6 weeks in house 2 ,
decorating or fitting it out for rental purposes.

if you buy a house next week,
you cant apply for trs on the loan interest,
unless you are doing it as a landlord .
As part of your tax returns .

footfall789

Hi , thanks for all great info.

Query refers to house purchased in 2007 .

So another question would be ,

Say i Had bought my third PPR in feb 2007 and drew down on €260,000 mortgage and claimed Non First time Buyer TRS in same year , then in Mar 2009 re mortgaged for €240,000 with another bank for a better rate , do I loose my non first time buyer TRS or would I be at year 3.

Also if I re mortgaged same PPR with another bank in 2009, would I loose the extra benefit for PPR house purchased between 2004 and 2008

The_Morrigan

Footfall your query is getting more complicated and detailed I would suggest you seek advice from a professional with regards to this matter.

riclad

I think you,ll still get same trs rate,
if mortage is on the same house, from the same bank.
re first question.
I can,t answer question 2.

The_Conductor

Footfall789- I'm going to reiterate what The_Morrigan has said- your queries are getting a little technical for us to offer you good information. You need professional advice.

footfall789

Hi , Yes it is getting complicated ,

Was onto Revenue today and they put me straight.

Wife's Fist time buyer so getting TRS relief on all interest for PPR, on average of 4,200 per year .

But as the interest on our property was less than 10,000 and my wife was claiming TRS on the full €4,200 , then I could not claim my €3,000 as a non first time buyer .

IT seems that Interest we were paying should have been over €10,000 in order for me to be able to claim all or part of my €3000 TRS.

On the good side I did not miss out on something I could have claimed . Thanks for all your help and time spent replying .

Regards.

The_Conductor

Good to hear you got it sorted.