Rental Income

L

luckyme

Guest
Hi all,

Quick question. Say the rent on a property that you are head tenant in is €900. And you have taken in extra people to live with you to cover this rent plus an extra €160 that you can keep for myself. Should you be paying tax on the €160?

Thanks.
 
If you are in receipt of rental income, then you are taxable on any rental profit.
 
Sorry, should clarify - sounds like "rent a room" position, but as the income is over €10,000, taxable in full, unless you opt to be taxed under the normal rental rules
 
But the income of €900 a month goes to the LL. The extra €160 a month goes to me which is €1920 a year. That is not guaranteed every month but for my question I will assume that I am getting this a month.

So am I under the threshold then?
 
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No, your total rental income is the full amount of €12,920, less your expenses - rent paid of €10,800, leaving taxable income of €2,120.

You therefore have to declare the rent and pay tax on the profit.
 
You should check your contract as most would not allow you to subrent and profit from it.

I'd be ticked off if a tenant charged others more than they paid me.

On the basis of what you say, you probably should be paying tax on it.
 
Samh, it was my LL's idea. My LL lives close by so he knows exactly what happens in the house and I am a very good tenant who looks after the place like it was my own. Perhaps some LLs are more flexible and nice than others.
 
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