How is rental income taxed

Hope someone can help with 2 questions.

Considering buying a house to rent out but not 100% on how the rent received is taxed. Joint owners and both paye workers in the higher bracket.

If rent received per month was €1200 and the repayments were €1000 how do you work out how much we would pay.

Also do you pay tax on the sale of an investment property?

Thanks in advance

Rental income is taxed under Case V schedule D.

The total rent received or receivable is assessed.

You are entitled to deduct expenses related to the property such as 75% of the mortgage interest if registered with the PRTB. Repairs, insurance, letting fees. Capital allowances are available on fixtures and fittings @ 12.5%.

So let's say your rent is €1,000 per month and you borrow €150k @ 5% allowable interest €5,625, insurance €300, letting fees €300, accountants fees €300.

Your assessable profit is €5,475. This is subject to tax on each partner PRSI and USC at 49.5% if your PAYE income exceeds €33,800.

Thank you for responding it was very helpful!

How does the Revenue verify ones rental income?

The returns are self-assessed and can subsequently be audited by Revenue.

The penalties for under-declaring your income are substantial.