House renting

D

dennigerz

Guest
I am currently going about setting up my home for renting, and am letting it to people on welfare. What step have i to take in setting up my home for the revenue and how much would it cost me each month in tax to the revenue. Thanks
 
Hi,

Maybe I am misreading your question, but when you say people on welfare, are you talking about someone on DSFA Rent Allowance.
Usually, the procedure is, to contact the relevant Local Authority, and fill out Application Form for same, and Register with PTRB as a landlord, and also provide a current Tax Clearence Cert. at which point, you can get all the information necessary, regarding your liability for tax.

Hope this may be of some help, and possibly someone else may be able to correct this, and offer further advice.

Best of luck with venture
 
If OP rents out his/her house, then s/he

- will lose TRS (and must inform revenue that the house is being rented and so to disapply TRS)
- should register with the PTRB (as the other poster said)
- can offset mortgage interest (interest only, not principal) payments against rental income - this can only be done if OP registers with the PTRB
- can offset other expenses (see other threads for info on what expenses are deductible, I don't have info on that - it's things like management fees, a portion of costs for furniture, insurance etc) against rent
- pays tax at his/her marginal rate for any rent, minus the authorised deductions/mortgage interest

So, if OP is on the 41% tax rate, rent is €1,200 a month and mortgage interest/expenses are €700 a month, OP pays 41% tax on €500 a month.

Sprite
 
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