Rental Income Query

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bryank706

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Hi all,
I have rented my house out since Dec 2010 and am due to do my tax returns by 31st Oct 2012.
I was just wondering, my mortgage on the house is 710 euro per month and i am getting 565 euro per month rent so i am making up the rest 145 per month out of my own pocket.
As i am making no profit on the rental will i be hit with a tax bill.
Any info would be good as i haven't got a clue.
Kind Regards
Bryan
 
Bryan, the tax return is not connected to your monthly mortgage payment. You can claim 75% of the interest you have paid yearly. If you have more expenses you may be due a refund. I am not an expert so wait to see what others say.
 
Tax on rental income is covered in the Property Investment Forum - all the information you need is there.

Also check Revenue's IT70 online guide to rental income.
 
Puzzled

Might take me a while to figure out all this.
Does it look like i will owe the Revenue money for my rental property??
Cheers
Bryan
 
Does it look like i will owe the Revenue money for my rental property??
Hard to say as you don't state how much of the €710 per month mortgage is interest - you can only deduct 75% of the interest.

You can deduct the following:-

Insurance
PRTB Registration Fee
Mortgage Interest @75%
Repairs & Maintenance
Management Expenses (rent collection, repair & inspection visits, bank fees)
Wear & Tear 12.5% over 8 years
Sundry Expenses (Phone, admin., stationery, printing, photocopying, postage, etc.)
 
Please read this thread from the start and all the information you need to complete your form 12 is there. I suggest you pay an accountant for the first year and then take it from there as his/her fee is also tac deductable so say €400 costs you €200 in real terms and they will make sure you avail of all the allowances. Should you have any further queries not discussed there then put them in in that thread also.
 
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