Rental Tax

Benny122

I have an apt which I purchased and I am thinking of renting for €600 per month.

I am a PAYE full time worker.

€7200 per annum income can anyone advise what taxes would be applicable and what would final figure after tax on income would be

Michael D Not Higgins

This will depend on your marginal rate of tax, your rental expenses during the tax year, if you have any mortgage interest to offset, etc. It would be worth getting professional advice from a tax adviser.

The_Conductor

As per what Michael D Not Higgins said- it depends on a few different factors.

1. Presumably your PAYE income brings you over the threshold (i.e. your paying a marginal rate of tax in the higher band)
2. What expenses do you have relating to the apartment-

I.e.

Management Charges
Insurance
Mortgage interest (at 75% allowable)
Letting costs
Depreciation of white goods (at 12.5% per annum over 8 years)

All of these are deductible from your gross rental income before determination of your net rental income for tax purposes.

Depending on what this list (which isn't exhaustive by any means!) comes to- you may not have any tax to pay- or it may be at a very low level.

I'd strongly advise getting your accounts done privately the first year (which is also an allowable cost) and then using your return in year 1 as a template for subsequent returns.

Zenify

In brief... you are looking at half of the income less any expenses.

Michael D Not Higgins

The_Conductor wrote: »

As per what Michael D Not Higgins said- it depends on a few different factors.

1. Presumably your PAYE income brings you over the threshold (i.e. your paying a marginal rate of tax in the higher band)
2. What expenses do you have relating to the apartment-

I.e.

Management Charges
Insurance
Mortgage interest (at 75% allowable)
Letting costs
Depreciation of white goods (at 12.5% per annum over 8 years)

All of these are deductible from your gross rental income before determination of your net rental income for tax purposes.

Depending on what this list (which isn't exhaustive by any means!) comes to- you may not have any tax to pay- or it may be at a very low level.

I'd strongly advise getting your accounts done privately the first year (which is also an allowable cost) and then using your return in year 1 as a template for subsequent returns.

Just one correction. Mortgage interest is allowable at 80% since the start of this year and 100% if you have a tenant getting a social welfare housing payment and have them for 3 years.

machalla

A few links that might help with this.

https://www.taxback.com/blog/irish-landlord-expenses

https://www.irishlandlord.com/tips-advice_item/tax-on-rental-income/

http://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

Pkiernan

Assume you will pay half.
Someone needs to pay for all of our scoungers.

LFC Murphy

I believe that 100% relief on interest for social welfare tenants is only allowable if registered in March 2016. The relief is then only allowable via back dating in 2019...

Taylor365

Benny122 wrote: »

I have an apt which I purchased and I am thinking of renting for €600 per month.

I am a PAYE full time worker.

€7200 per annum income can anyone advise what taxes would be applicable and what would final figure after tax on income would be

I'm guessing you didn't pay through the tooth for this apartment as €600 per month would only break even on a mortgage of around - €40,000.

Things to consider:
Insurance
LPT (not deductable)
PRTB
Maintenance
MGMT charge

That will probably leave about €300 per month taxable (or if your mortgage is anywhere €100k+, €0 taxable, as you're at a loss).