Mortgage interest relief question. Please help!!!

[rupert7]

We have a one bed apartment in NE (brought in 2007 for €300000) Due to our ever expanding family we had to rent it out and rent a bigger house ourselves.
Got a letter from revenue to say we will now lose our mortgage interest relief.
We pay €1150 a month at present.
Can anyone tell me approx how much more I will be repaying every month?
Also I didn't realise that I should not be getting MIR if renting my house.
Will there be any reprocussions for not declaring this earlier?
Thanks in advance.

 

[elcato]

Do you mean TRS or are you getting a supplement from Social wekfare ? If TRS it should be stated clearly on your mortgage bank statement how much you were getting monthly.

 

[Protocol]

Mortgage interest relief, known as TRS, only applies if you live in the house.

The moment it's not your PPR, then you should tell the Revenue to cancel the TRS.

 

[44brendan]

Yes there will be repercussions! Best to contact the Revenue and they will advise you as to what can be done. Otherwise you risk a tax bill plus penalties arriving.

 

[elcato]

This happended to a friend of mine and when they stopped the TRS they then sent out a bill at the end of the year for a refund of money due. My friend was able to make stage payments on what was owed so I don't think you need over worry about this. But be prepared for the request for back payment. You should calculate how many months it was let out for and multiply that by whatever TRS figure you were paying. Taht's the long and the short of it I'm afraid.