Giving up work and going to college

R

Romy

Guest
Hi I am hoping to give up work and go to gollege for a year, I am hoping to cover my mortgage payments, living expesnses etc., by taking in students, I have a small personal income as well and this plus the rental will be all I have to cover my costs for the year?

How would I be fixed tax wise?
 
An owner occupier can rent rooms in his/her Principal Private Residence (PPR) and earn up to €7,620 per annum in rental income tax free and with no impact on the tax treatment of their PPR (e.g. clawback or [broken link removed] on resale) under the . However if this exemption threshold is exceeded then the normal investment property tax treatment (in terms of income tax, stamp duty and CGT) applies. In particular all of the rental income and not just the excess over the exemption threshold is assessable for income tax. Maybe this would be of interest to you?
 
Thanks that is great I would not imagine it will come near that amount. I really appreciate your reply!
 
I would imagine you may get some type of tax rebate or credit if you say give up work. Also when you return to work the following summer,you will have a lot of unused tax credits & you may pay no tax for a while.
 
I don't think that there is any tax credit for giving up work! However there is always the [broken link removed] which allows you to claim back income tax already paid in respect of tax credits that build up unused if you give up/lose work during the tax year.
 
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