Renting out primary home

5

555john

Guest
Hi, Looking for advice on this one:
I want to rent out my home and live in an apartment, but I don't know if this turns my home into an investment property.

My current situation is I bought a property and lived in it for about the last year. I just relocated to Dublin for work where I'm now renting an apartment and and would like to lease out my own property. Does this mean that I would have to pay the back stamp duty on the house at the investors rate (5% I think)?

Anybody done this or framilar with the tax suitation I would be in?
 
Basically yes. You have to live in the property for five years before the clawback does not apply.
 
You could always keep a room in the property that you own and just rent out the rest of it.
 
Art said:
You could always keep a room in the property that you own and just rent out the rest of it.
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If you are referring to the rent-a-room scheme, there are fairly stringent conditions around the maximum rent permitted and where you live to qualify for this scheme.
 
RainyDay said:
If you are referring to the rent-a-room scheme, there are fairly stringent conditions around the maximum rent permitted and where you live to qualify for this scheme.
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I didn't think there were restrictions around where you lived for the rent a room scheme. What areas are these?
 
I presume Rainyday means which property they home owmner decides to reside in, and not actually location.

ie if they intend on renting out the original property and residing elsewhere then this does not qualify under the rent a room scheme.
 
Thanks for the input, the only real option available seems to be to maintain my home as my primary domicile and then use the rent a room scheme. As far as I know there is an allowance of around €9500 per year on the income from that.

Not Ideal, but workable.
 
colc1 said:
I've never heard this b4, i.e. the location matters? Please explain
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no location doesnt matter just whether its PPR or investment and if you are living in the home which you are claiming rent a room from.
 
As far as I know there is an allowance of around €9500 per year on the income from that.
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The max allowed under the rent a room scheme is 7,620. Any amount over this and the whole amount is liable to tax. See [broken link removed]
 
bearishbull said:
no location doesnt matter just whether its PPR or investment and if you are living in the home which you are claiming rent a room from.
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thats what I thought thanks
 
Thrifty said:
Basically yes. You have to live in the property for five years before the clawback does not apply.
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Is this five year clawback rule applied if I move to another house before the five years are up. For example, I bought a new house in January 2002 and am now selling it to move to another house. It was never and never will be rented and was my PRR for the last 4 years. In these circumstances, is this rule enforced? Have just realised, that my address with the revenue is still my parents - never actually changed it to my PPR.
 
Provided the new house is to be your PPR there should not be a problem.
 
Hi,
I am in a similar position - have been in my home for 2.5 years. I'm going abroad for a year. I have a 2-bed place and will rent one of the rooms out. Technically, I still have a room in the place and its still my primary residence in Ireland - I just won't be there. Do I still have to pay stamp duty clawback? Is it not just like an extended holiday?????
 
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