Own and rent a Property, Rent a Property

D

dubkildare

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Hi

I own a house and currently have this house rented out as I am working in another county. I rent another house in this county. The rent received and paid are the almost identical ( The rent I pay is slightly more) so is maneageble. My question is what or am I obliged to make a tax return on income from my own property.
 
Yes you are.

The rent you receive is taxable income, the rent you pay is not a deductible expense.
 
cremeegg said:
Yes you are.

The rent you receive is taxable income, the rent you pay is not a deductible expense.
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Thanks, my sister is renting my house. I often return and stay at this address and have a room in the house that's not used by anyone bar me. Would it be possible to declare my sister as a rent a room.
 
If the house you own remains your main residence (basically the place where your friends and family would expect to find you) then you can rent a room to anyone up to a ceiling of €14k per year without incurring a tax liability.

From Revenue:

Sole or main residence​

Your main residence is your home for most of the year and where friends would expect to find you. You do not have to own the property to claim relief.
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But if your main residence is a rental property and you let your own house then you are liable to income tax on the rental profits.

So I think your issue comes down to how much time you spend in your rental house and how much in the house you own.
 
Keep a room for your own use in the house you own.
Keep the bills in your name.
Ensure all post goes to the property you own.
You live elsewhere temporarily due to work demands & stay in the house you own to socialise / meet friends.

I am not a tax expert, but it would be my view that the above would be sufficent to meet the rent-a-room requirements.
 
Thirsty said:
I am not a tax expert, but it would be my view that the above would be sufficent to meet the rent-a-room requirements
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I would be stunned if Revenue agreed with you.

The OP works in another country - the house being rented to his sister is pretty clearly not his home for most of the year, where friends would expect to find him.
 
OP is temporarily accomodated elsewhere for work.

The home he owns is still his primary residence. Property is occupied on a sharing arrangement. Sister has legal status of guest not tenant.

No point in making things more complicated than they need to be.
 
It's not "stretching" anything.

If you rent a room in your home, the person to whom you are renting has the legal status of a guest, they have no right of occupancy; they can be asked to leave at any time. Payment of rent doesn't come into it.

A tenant with sole use of the property on the other hand does have rights of occupancy.
 
Thirsty said:
The home he owns is still his primary residence. Property is occupied on a sharing arrangement. Sister has legal status of guest not tenant
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The test is whether the house is the person’s sole or main residence for most of the year and where his friends would expect to find him.

The OP has told us that he is renting in another county and there is no mention of this being a temporary arrangement.

To be frank, your advice is reckless and based on facts that you have just invented.
 
a. This is the internet

b. I am not being paid; I am not 'advising' in a professional capacity.

c. There is zero risk here to life or limb; the charge of "recklessness" is more than a little overstrained.

d. Be careful of high horses; serious accidents can occur.
 
Brendan Burgess said:
Hi Thirsty

This is askaboutmoney.com

We do try to get stuff right and where it's wrong or misleading, to correct it as quickly as possible, as Sarenco has done.

Brendan
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Differing opinions were already expressed; transposing that opinion to a charge of "recklessness" is what I object to.
 
Thirsty said:
Differing opinions were already expressed; transposing that opinion to a charge of "recklessness" is what I object to.
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You are entitled to your own opinions but you are not entitled to your own facts.

Offering advice based on invented facts, without any heed for the consequences of that advice, is the very definition of recklessness.
 
Isnt thirsty broadly correct though:

-IF sister is lodging and
-IF she states that her owned house is her primary residence and
-if her post goes there and
-if bills are in her name?

Two big IFs but if and only if thoses IFs are facts then i would say Thirsty is right.

Keep er simples as my great granny used to say
 
ArthurMcB said:
Isnt thirsty broadly correct though:
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No.

The house would, as a matter of fact, have to be the OP’s sole or main residence for most of the year and where his friends would expect to find him.

Simply “stating” that the house is the OP’s sole or main residence or that the sister is merely a lodger isn’t enough.
 
But if she is a lodger and if it is their main residence then thirsty is correct. The OP obviously will know this and will need to decide her course of action based on knowing this. I have no idea what the actual facts are which is why i inserted a few ifs here and there. Keep er simple boys
 
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