Rental tax

P

Pat

Guest
Hi folks,

Just looking for some advice on my predicament.
I live in an apt with my wife and child. We are trying to get a house but are in neg equity. So we need to rent one.
I could get 950 rental for my place but mortgage is 1250 and rising...
I have found a small house in the locality which would suffice and i could probably get it for around 850.
I know its not a straightforward €100 savings so can you advise what rate of tax i would have to pay on my rental income and is the whole 950 taxable or only a percentage of it?
Im trying to come to a figure that i would need to shell out each month if i went ahead with the switch. Appreciate any advice.
Regards, Pat
 
probably not worth the 100 euro difference unless location/size is an issue. If you could live/share nearly rent free it might be worth it.

Check the many threads on this site that (look for stickies) that have the info you need.
Basically 75% of the interest you pay on the mortgage could count against the tax plus any expenses.

So assume you pay 800 of the 1250 in interest, and the rest is capital - that would be 1250 minus 600 (interest allowed) minus any monthly expenses. You would then pay tax on the remaining part of the rental income...
 
Thanks. Found what i was looking in another thread.

Dejection is an understatement. Will be staying put for quite some time i think.
 
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