Long term leasing to city council

[BPL]

Hi all, I'm possibly looking to rent my house to the city council for the long term leasing. I'm wondering does the owner have to pay tax at the end of every year, from the money I recieve for leasing out my house to the city council and if so how much ?

 

[ronaldo]

You have to pay tax on any profit and you're not really going to get someone to tell you how much on the forums. Sure, you will get people giving guidance if you decide to work it out for yourself and have questions about the finer detail.

However, working out how much you'll owe depends on your current earnings, your residency, your expenses in the year, your mortgage interest, whether you're registered for the PRTB and a host of other information. It's what accountants are paid for.

 

[WizardDr]

Assuming its rented out without use of any room (rent a room relief) then the Rental Income is assessable but you may get deductions such as:

- mortgage interest at 75% (but you must register with the bureaucrats PRTB)
- 12.5% of value of fixtures and fittings each year
- certain repairs
- certain costs for collecting rents
- direct costs attributable to lettings

If you incur costs that are before the 1st letting these are not deductible

I understand that the Revenue do not allow certain costs against the income such as property tax etc.

Depending on the Rental Profit - if its less than 10% and you are PAYE you can file it with that return without being deemed to filing the return for self employed folk and directors. USC and the double tax PRSI also apply.

[This is an edited summary - provide more information for more detail]