Renting House out

D

damien79

Registered User
Messages
16
I have recently bought a new build due to be ready next month. I am a first time buyer. Due to work commitments I cannot move into it for another year. If I rent it out (would get approx 700 monthly) what would the tax implications on the rental income. Also, would I lose my extra mortgage relief as I'm a FTB.
Any info greatly appreciated.

Damien
 
This does not really cover anything for first time buyers. My main question is, "Is the extra mortgage relief recieved by FTB's just for owner occupiers?".
For example, will I lose that relief if I am not living in the house.
 
Did you actually read the thread? It certainly does cover the pertinent info and clearly states that if you rent out then you cease to be an owner occupier and so owner occupier mortgage interest relief is totally irrelevant - at least as long as you are classed as an investor. It also clarifies the other tax issues such as SD clawback, CGT, rental income tax etc. and other issues such as PRTB registration.
 
you will have to pay income tax on the rent. also do not apply for the FTB(TRS) relief until you are living in house. The best thing to do is to email the TRS section of the revenue directly with your query. They are very good at responding.
 
Difficult question. I feel you would lose FTB TRS - also possible stamp duty implications.

You could avail of the rent a room scheme if you live in the house yourself and rent some of the rooms out. Maximum rent €7,620. Go €1 over and all is taxable. From this you may also lose at least some of the TRS and indeed may have stamp duty implications. Stay below this rent and you can get full TRS, no CGT on subsequent sale, etc.. Dependant upon the detail my advice is either move into it or else leave it empty until you are ready.
 
You must log in or register to reply here.
Back
Top