Am I due mortgage interest & rent payable relief?

1. Can I claim Mortgage interest relief backdated to December 2005?
2. If so, what is amount due? (or how do I calculate this? )
3. Do I owe any tax on the rental income received from the house since Feb 2008? (The monthly mortgage payments are and have been more than the rent receivable )
4. Can I also claim tax relief for the rent i have paid on the apartment?
5. If so, what is amount due? (or how do I calculate this? )

Ennie said:

1. Do I owe any tax on the rental income received from the house since Feb 2008? (The monthly mortgage payments are and have been more than the rent receivable )quote]

I would like to know the answer to this question too. A friend of mine recently became unemployed & he is looking to rent out the house seperately to cover the mortgage. As above if his monthly mortgage is greater than the incoming rent, then is the rental income taxable. If its less what tax would he have to pay assuming he is on Job seekers benifit/allowance?

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Ennie said:

Hi,
I would be very grateful to receive advise on the following:

I acquired my first owner occupied house(new) in December 2005.
Took out variable rate mortgage of €250k. Payments approx €1300 p.m.
I have never claim Mortgage Interest Relief.

Why not?

I decided to move closer to work in Feb 2008. I rented ithe house out at €1250 p.m. No stamp duty clawback issue arose as Budget reduced minimum occupation period from 5 to 2 years.

You were lucky!! Very close.

I then(Feb 08) rented an apartment at €1675 per month. I have not claimed any tax Relief on rent paid to landlord.



My questions:

1. Can I claim Mortgage interest relief backdated to December 2005?

I think you can. See here:

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section7

1. If so, what is amount due? (or how do I calculate this? )

It's 20% of interest, up to a ceiling, depending on if you are single or married.

1. Do I owe any tax on the rental income received from the house since Feb 2008? (The monthly mortgage payments are and have been more than the rent receivable )

To calculate any tax, you work out the net rent, which is the gross rent less any deductions, e.g. mortgage INTEREST, repairs, etc.

1. Can I also claim tax relief for the rent i have paid on the apartment?

See above: you reduce the gross rent by the interest paid - that is the tax relief on interest paid.

1. If so, what is amount due? (or how do I calculate this? )

My salary is €100k per annum. Paid approx €32k p.a.y.e. tax in 2008. I am in full time employment. I have not been in any contact with Revenue.

Many thanks in advance,
Ennie.

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