Hi,
I don't understand the 42% tax of rental income.
There are some website provide examples, such as this:
Gross rent 9,000
Less Allowable Expenses
Letting Agent Fees 1,200
Allowable Interest (4,000*75%) 3,000
Repairs 1,100
Electricity/Heating 500
Accountancy Fees 300
Cleaning costs 400
PRTB fees
90
Total 3,590
Rental Income 5,410
Capital Allowance
Furniture & Fittings
Cost 6,000 x 12.5% 750 750
Net rental income 4,660
If I'm a buy-to-let investor and I can full pay a property (no mortgage / interest as expenses). The next rental income will increase 3,000 , €7660.
Does that mean the tax for the year will be 7660 * 42% ?
If so, that means the income after tax is 3677. For a property Gross Rent at 9,000 . The price is about 100k.
The actual yield is 3677/100k = 3.67% which is lower than many interests rates.
If so, what is the point of doing a buy-to-let, with all these troubles?
I don't understand the 42% tax of rental income.
There are some website provide examples, such as this:
Gross rent 9,000
Less Allowable Expenses
Letting Agent Fees 1,200
Allowable Interest (4,000*75%) 3,000
Repairs 1,100
Electricity/Heating 500
Accountancy Fees 300
Cleaning costs 400
PRTB fees
90
Total 3,590
Rental Income 5,410
Capital Allowance
Furniture & Fittings
Cost 6,000 x 12.5% 750 750
Net rental income 4,660
If I'm a buy-to-let investor and I can full pay a property (no mortgage / interest as expenses). The next rental income will increase 3,000 , €7660.
Does that mean the tax for the year will be 7660 * 42% ?
If so, that means the income after tax is 3677. For a property Gross Rent at 9,000 . The price is about 100k.
The actual yield is 3677/100k = 3.67% which is lower than many interests rates.
If so, what is the point of doing a buy-to-let, with all these troubles?