Landlord - what are tax implications

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NewHere08

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I currently have a mortgage on house and wish to move to a different area. Although the house is not in negative equity, it would be unwise to sell as I would not have enough for deposit. I'm a PAYE worker in higher tax band. I bought 5 years ago.
As I really want to move house, I wish to know the following:
(1) If I rent a new property myself, and rent out my own - what are my tax liabilities? It is likely that the rent received would be same/slightly less than the mortgage.
(2) How much is the max rent allowance in Dublin that I could seek from a RA tenant?
(3) I have heard that you can sign up to some program that the council take over the house. How do I find out more about this?
Any advice would be much appreciated.
 
@The Angler, the idea of using the forum is to share information publicly amongst the members - sending private messages does not achieve this, as Yeager has pointed out.
 
Are PMs not for sending info privately b'cos they contain stuff you don't want to share for whatever reason?:confused:
 
Yes they are, but a 1st time poster PMing a newish forum member who is asking publicly for fairly basic information - I found that a bit strange, hence my comment.
 
NewHere08 said:
(1) If I rent a new property myself, and rent out my own - what are my tax liabilities? It is likely that the rent received would be same/slightly less than the mortgage.
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The two issues are separate and one has no bearing on the other. On the rental property you do not have to pay stamp duty as you own it more than 2 years, you pay tax on the profits which is rental income minus 75% of mortgage interest (not capital) and minus running costs (advertising, repairs bin charges etc. You should read up AAM and revenue.ie to learn your liabilities. Most important is to register with the PRTB (70 Euro) and don't forget the new property tax of 200.

Are you able to cover the shortfall in the mortgage and also pay tax if necessary. If you are not in negative equity it may be a better idea to sell. You have to do the figures to see if renting is worthwhile.
 
In response to those seeking similar information (Thank you The Angler and Bronte)
(1) Acting as landlord - you would pay:
PRTB registration + nppr tax + stamp duty* + income tax on profits**
*if owned less than two years
**rental income minus 75% of mortgage interest minus running costs
(2) Rent allowance thresholds are here: http://www.welfare.ie/EN/Topics/Budget/bud09_apr/Pages/MaxRentLimitJune2009.aspx
(3) The scheme where the council takes over the property is the Rental Accommodation Scheme (RAS) from the Department of the Environment - implemented by the local council.

Having worked out the calculations, it seems it will be costlier than I thought so I might investigate the sale option further. Thank you all for your help.
 
If you rent out a 2 bed apartment for 1,100 per month (the mortgage which is a repayment mortgage is 850 per month roughtly what would be your tax liabilities ?
 
Society said:
If you rent out a 2 bed apartment for 1,100 per month (the mortgage which is a repayment mortgage is 850 per month roughtly what would be your tax liabilities ?
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You'll need to provide more information to get a decent answer. How much of the 850 is interest? You'll have received a statement from your bank in January telling you exactly how much interest you would have paid last year. This is a fairly good approximation of what you'll still be paying this year in interest. You can deduct 75% of this interest from rent received at present before calculating tax due.

You can also deduct all costs associated with running the rental property (but importantly no pre-letting expenses apart from costs directly associated with finding a tenant, advertising etc.) before calculating tax, including depreciation of fixtures and fittings @12.5% for 8 years.

You also need to tell us what income tax band you're in (if you are already paying top rate tax, then your rental income will also fall under this).

Provide as much info as you can for a more definitive answer.
 
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