Buying new house as PPR and renting it out

D

dstanley

Registered User
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Hi I am wondering what would be the tax liablity in the following scenario:

I have bought a property for €630k and as it was new had no stamp duty to pay. I am planning to rent a room to help pay the mortgage under the rent-a-room scheme.

What would happen if I take a year out to travel and rent out the property for that year and then return to it as my PPR.

What tax liablity would i face?
 
Within 5 years of Buying as an owner occupier you would pay the same stamp duty as investors
 
How is this calculated? I've been told its a claw-back but is this based on the time it was rented out?
 
You are liable in full based on the purchase price, with the stamp duty due from the date the property is first rented. There is no pro-rating for time spent occupying the property.
 
As long as you keep a room for yourself I cannot see why not.

But in order to avail of the rent-a-room scheme your rent will have to be under the scheme threshold (approx €7,500, can't remember exactly)
 
OldBlueEyes said:
As long as you keep a room for yourself I cannot see why not.
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You may not, but Revenue can.

This issue has been discussed many times on AAM.

If you are absent for 12 months you are not an OO and therefore can't use the RaRS to recieve rent tax free (is the general opinion given on AAM and confirmed by information recieved from Revenue by a handful of posters).
 
If you were present in the State for part of the tax year would you not be eligible?

For example away from July to June the next year. Then you have occupied the house as your PPR in each year of accessment.
 
OldBlueEyes said:
If you were present in the State for part of the tax year would you not be eligible?

For example away from July to June the next year. Then you have occupied the house as your PPR in each year of accessment.
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Being in the state relates to being Tax Resident, not to OO status.

In the example you give your property would not be your PPR for the months of July, Aug, Sept..... May. So you couldn't (technically) claim RaRS for those months (I'm not for one second claiming people don't do it, just that it's not correct for tax compliance).

As I said, previous threads cover this in far more detail and contain the relevant details as recieved directly from Revenue, I'm not saying it's my view on the matter and what I believe to be fair, but it is the rule.
 
OldBlueEyes said:
As long as you keep a room for yourself I cannot see why not.

But in order to avail of the rent-a-room scheme your rent will have to be under the scheme threshold (approx €7,500, can't remember exactly)
Click to expand...

How is the PPR defined?

The Limit is 7620 tax free... am i right to interpret that above and beyond this that the standard income rate of tax applys or is it on the full amount?
 
When someone mentions a topic has been discussed before it usually means "please go read the other threads as the questions have already been answered", were just all far too nice to say that :p

http://www.askaboutmoney.com/showthread.php?t=40901&highlight=rent+room

Probably the most relevant one, but lots of others available too!

If you do have specific questions about some aspects you can't find or aren't available on other threads do throw them up.
 
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