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Rent Out a Room in your Home

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  • 31-12-2017 3:49pm
    #1
    Sweg
    Registered Users Posts: 40 ✭


    Hi,

    I am looking at renting two rooms in my home, and am thinking about the tax situation.

    I know that you are exempt from income tax when renting a room in your home, up to €14k.

    Hypothetically, if I were to just spend the weekends in my home, would I be charged income tax?

    Thanks for the help.


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    #2
    Zenify
    Registered Users Posts: 861 ✭✭✭Zenify


    Sweg wrote: »
    Hi,

    I am looking at renting two rooms in my home, and am thinking about the tax situation.

    I know that you are exempt from income tax when renting a room in your home, up to €14k.

    Hypothetically, if I were to just spend the weekends in my home, would I be charged income tax?

    Thanks for the help.


    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx


    "4. Qualifying Residence 4.1 Sole or main residence

    The room or rooms must be in a residential premises that is situated in the State and that is occupied by an individual as his/her sole or main residence during the particular tax year. An individual may live in more than one residence but can only avail of rent-a-room relief in respect of his/her sole or main residence. In general, an individual’s sole or main residence is that individual’s home for the greater part of the time and where friends and correspondents would expect to find him/her. The individual does not have to own the residence and it could, for example, be occupied as rented accommodation."


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    #3
    padd b1975
    Registered Users Posts: 10,759 ✭✭✭✭padd b1975


    Sweg wrote: »
    Hi,

    I am looking at renting two rooms in my home, and am thinking about the tax situation.

    I know that you are exempt from income tax when renting a room in your home, up to €14k.

    Hypothetically, if I were to just spend the weekends in my home, would I be charged income tax?

    Thanks for the help.
    It's fine.
    I'm only there one weekend a month or so, maybe one night during the week and revenue have no problem with me availing of the rent a room scheme.


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    #4
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    padd b1975 wrote: »
    It's fine.
    I'm only there one weekend a month or so, maybe one night during the week and revenue have no problem with me availing of the rent a room scheme.

    Each situation will turn completely on it's own set of facts. Will the OP have an issue - probably not, that's not to say he'll be legally availing of the scheme.


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    #5
    beaufoy
    Registered Users Posts: 324 ✭✭beaufoy


    Side question if a professional LL with a few properties rented out and paying tax on said rentals decided to rent out a few rooms in his own house would he be qualify for the rent a room scheme


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    #6
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    beaufoy wrote: »
    Side question if a professional LL with a few properties rented out and paying tax on said rentals decided to rent out a few rooms in his own house would he be qualify for the rent a room scheme

    Yes.


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    #7
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Askthe EA wrote: »
    Yes.

    +1 I do. Not that I'm a profession LL I have a rental property and rent a room though.


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    #8
    beaufoy
    Registered Users Posts: 324 ✭✭beaufoy


    Samuel T. Cogley wrote: »
    +1 I do. Not that I'm a profession LL I have a rental property and rent a room though.

    Do short terms rentals in your own home qualify


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    #9
    Peregrinus
    Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    beaufoy wrote: »
    Do short terms rentals in your own home qualify
    No, in the Revenue view.

    There's a contrary view that, correctly interpreted, the legislation does provide the exemption to income from short-term lettings. But the Revenue position is clear so if you want to argue for the contrary view you can expect to have to take your chances before the Appeal Commissioners.


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    #10
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    beaufoy wrote: »
    Do short terms rentals in your own home qualify

    It would depend on your definition of short term.

    Revenue have made it clear that airbnb style renting a room for a weekend doesn't count. If it's for a month though it definitely anything above 2 months o think rent a room would apply. People renting to summer students for instance have always done so under the rent a room scheme.


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