Renting Property - Tax Implications

[heather]

Can anyone advise me on the following:
Currently an owner occupier in a 2 bed apartment, and due to the family expanding, we want to move on to a bigger property. Given the current housing market, we are considering renting out our 2 bed apartment, and renting a 3/4 bed property for ourselves. I have no idea what the tax implications would be - could we write off the tax credit we get as renters against the tax we would have to pay on the rental income from ours? Whats the best way to approach it?

Thanks as always

 

[WaterSprite]

You will get rental allowance (tax credit) for your new (rented) property in any case- you can't write that off against income tax owing for rental income on your owned property. You can offset mortgage interest (for a mortgage used to buy the owned property) against rental income. There are lots of threads on the board about the tax implications of renting out property, including property that used to be a PPR - suggest doing a search and post back if anything's not clear

Sprite

 

[advisor]

Just remember you can only claim your mortgage interest as a deduction against rental income if your register with the prtb. See PRTB.IE . Go to the revenue website and download a copy of IT 70, this explains what you can and can't deduct against your rental income to arrive at your net profit/loss - revenue.ie.