Hi All,
What are the tax implications on renting out a primary principal residence (PAYE worker, paying tax at higher rate).
Income Tax
USC
PRSI
others??
Ultimately, I just want to understand how big the gap will be between the mortgage and the after tax rental income.
For example:
The mortgage is 1000 per month (capital + interest)
Potential rental income is 1000 per month.
I am assuming I need to pay tax on the income which would mean I wouldn't be able to cover the mortgage. How much would the tax/USC/PRSI be (or how do I calculate it)?
Ideally, I would just be looking for the rental to cover the cost of the mortgage.
Can someone help with the figures please?
I have heard some people mention that you can offset some of your tax liability against the mortgage interest (or something like that). Is this possible?
I'm also aware of the potential change to the mortgage terms (buy to let) but I'm just looking at tax implications for the moment.
Thanks,
digweed
What are the tax implications on renting out a primary principal residence (PAYE worker, paying tax at higher rate).
Income Tax
USC
PRSI
others??
Ultimately, I just want to understand how big the gap will be between the mortgage and the after tax rental income.
For example:
The mortgage is 1000 per month (capital + interest)
Potential rental income is 1000 per month.
I am assuming I need to pay tax on the income which would mean I wouldn't be able to cover the mortgage. How much would the tax/USC/PRSI be (or how do I calculate it)?
Ideally, I would just be looking for the rental to cover the cost of the mortgage.
Can someone help with the figures please?
I have heard some people mention that you can offset some of your tax liability against the mortgage interest (or something like that). Is this possible?
I'm also aware of the potential change to the mortgage terms (buy to let) but I'm just looking at tax implications for the moment.
Thanks,
digweed