Can anyone help? New Landlord

Could anybody explain what I need to do in the following case please:

I have an apt that I now need to rent out. I bought it as a first time buyer two and a bit years ago. As far as I am aware I can now officially let it but I assume I will lose interest relief?

Can anyone clear up what I need to do and what are the tax implications of this? Also I need to register etc so does anyone know figures for all of this? Are you left with anything to pay off mortgage after all deductions!?

A bit lost so any advise appreciated!

Hi,

Welcome to AAM.

Sorry can't give much advice myself as not a landlord but things that spring to mind immediately are:

1. Read the two key posts at the top of this forum. Even if they are dated you might get some advice.

2. Run the search option in this forum and see if any threads are of use.

3. Read the www.prtb.ie site.

4. Have a look at www.threshold.ie to see things from the other side of the fence.

5. Not sure if there is anything on www.citizensinformation.ie but might be worth a look.

Best of luck with it.

S.E.

I have an apt that I now need to rent out. I bought it as a first time buyer two and a bit years ago. As far as I am aware I can now officially let it but I assume I will lose interest relief?

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Yes, you do not have a stamp duty liability and yes you must inform the TRS revenue office once you stop living there.

Can anyone clear up what I need to do and what are the tax implications of this?

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You will be required to fill out a Form 11 and return to revenue before Oct 31st of each following year. i.e. for 2009 you will need to make a return before October 31st 2010 and so. This form will need your P60 details for the year in question. Depending on your rental yield and your allowable expenses you may have to pay tax. This is taxable at whatever your current tax bracket that this income would bring you to after your paye earnings are calculated.
You will need to register the tenancy with the PRTB also. Cant remember exactly but about €120 but its a tax allowable expense.

Are you left with anything to pay off mortgage after all deductions!

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Any excess earnings after tax will decide this.
Quick (unaccurate) example figures k roughly per annum
Rent 9.6
Expenses 1.5
Interest 6.0

So you are allowed 75% of the interest paid in that year to service your loan so you deduct 4.5k + 1.5k expenses from rent yield which is 3.6k. That is taxable so assuming you are earning above the 20% tax band you will be liable for about 1.8k for that year.

Things to take into account regarding rent though is that you may not always have the place let. Expenses include management fees, insurance, redecoration.

PRTB scam -- I mean fee, -- is €70 if paid within one month of the letting otherwise €140.

Then there is also this BER certificate which cost me €225 each on two houses. Advertise in the Herald and one of these new companies -- onto a good thing and, surprisingly, having their stationery printed and surveyors recruited -- will contact you and warn you of dire penalties if you don't have a BER cert when you let your apartment. I wonder who they knew or who they are related to in the Green Party to be able to get off the blocks so quickly!