Renting out our house

K

kazcoz

Guest
OK we've decided to rent out our house cause the commute is killing us and rent in the city ... we've found someone to rent our house. What are the tax implications .... the rent we are going to receive is not going to cover our morgage fully and now the tenant wants to claim relief ... will this effect our wages??
 
If you own the house for less than two years then there may be stamp duty implications. You well have to pay income tax on any profit that you make from renting. The rent may not cover the mortgage but only the interest element of the mortgage is tax deductable as this is a cost. The element that you pay off the capital amount is not a cost and so is not deductable.
Basically if you pay €1000 a month and €800 of this is interest you pay tax on the last €200 less other costs. There are many other threads on this site (look at the FAQ's of this section) that give details on what else is deductable.

BTW, I think you are making a smart decision.
 
me and my friend baught an appartment.he is moved in but im going to rent out my room. can i claim mortgage relief and rent out my room. the rent im asking for will not cover my half of the mortgage. also what happens if my tenant claims rent relief, will that effect my mortgage relief?
 
darraghj said:
me and my friend baught an appartment.he is moved in but im going to rent out my room. can i claim mortgage relief and rent out my room. the rent im asking for will not cover my half of the mortgage. also what happens if my tenant claims rent relief, will that effect my mortgage relief?
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Where are you going to live? You can only avail of the rent-a-room scheme if your still living in the property.
 
what does the rent a room scheme involve? im just goin to live at home. can i avail of mortgage relief whilst renting it out.thanks
 
darraghj said:
what does the rent a room scheme involve? im just goin to live at home. can i avail of mortgage relief whilst renting it out.thanks
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Since you're not living there you will be classified as an investor. This means you can't avail of owner occupier mortgage relief. There's no point in me explaining about the rent-a-room scheme since you will not be eligible anyway.
 
if i rented my room for 600 per month, could my tenant claim rent relief? thanks for help
 
www.revenue.ie summarises the relief limits on private rental accommodation rental payments by tenants.

Did you take on board the comments above about you actually being an investor in this situation and the tax implications arising?
 
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