A
Once you rent out a property that was formally your PPR, the following is usually the case:
1. you can no longer claim TRS - tax relief at source on the mortgage interest
2. you get a different type of tax relief on the mortgage interest, whereby you can deduct 100% or 75% of the interest from the rental income when doing your tax return
3. inform your house insurer
4. inform the mortgage lender (???)
5. register the tenancy with the PRTB
6. do a tax return each year to return your rental profit / loss, this is where you deduct the interest and other costs
7. recently, a 200 pa property tax on non-PPRs was introduced
8. you can claim a rent tax credit on the rent that you pay
Your landlord is looking for your PPS number so he can register the tenency for his property with the (Private residential tenency board) PRTB.
Ok I will act on this, but what do u think might happen with the fact that I have not lived in it for about 3 years and have been claiming Mortgage Interest Relief since then? Will revenue be trying to get this back ? And will they find out about all this when my landlord supplies them with my PPS number ?
There is also the issue of possible claw back of stamp duty if the property was not used as a PPR for a prescribed duration before being rented out.
Any idea what the prescribed duration is or where you can find info on this?
1: What is the most tax efficient way to deal with the situation I am in? - Should my approach be to see the losses I am making each year as a buffer that I can use in the future - when my repayments drop and hopefully my rental income stays the same or maybe even increases slightly?
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