renting out house! tax query

D

dj123

Registered User
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Hi

Just wondering could anyone give me some advice! I own a 3bed semi and am thinking of renting the house out for a year or two, I hope to charge 700 or 750 a month, which will just about cover the mortgage, how much tax do I pay on that then? as in how much will I really be left with after the tax man gets his share.

Thanks
 
Tax is based on :-
Rental income
Less 75% of mortgage interest ( interest only not overall repayment)
Less allowable expenses, insurance, PRTB, etc.
= Net rental income
That is then charged to tax at your marginal rate + levies/PRSI .
You'd need estimates of the interest & other costs and also your other income ( as this miay bring you into a higher tax bracket ) before anyone could give meaningful estimates.
 
On AAM there is a page on property investment with most of the expenses you can deduct to arrive at your profit. If you have a look at that you may have a better idea.
 
if you are renting your home and you are moving abroad to a county with a double taxation agreement with Ireland, e.g. the U.K or Canada,
AND
if the net rental income is your sole income in Ireland and is in the order of €15k to €20k pa
Is your income abroad used to see if you are due to pay tax at the standard or Higher rate of tax etc?

Is there an easy way to explain how this works?
 
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