Renting your own home - income tax caclulations

H

hippo.hi

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Mortgage payment a month 1250 + TRS 200
Interest per annum 12512 (1042 a month, 0.75% = 782)
Management fee 100
Potential Rent 900
I am right in saying that if I can expense 75% of the interest paid – 782 + Management Fee of 100 and getting 900 for rent I will be not making any profit when I add expenses. Does this mean I will not be paying income tax?
Is it possible to submit your own income tax return on rental property?
We are cosidering renting our home and renting bigger place as we need it, and as many others we can't sell due to negative equity.
We have lump sum that we plan to keep in case we are out of tenants for up to year. However the property is in good location for rental and there are no vacant properties for over few weeks. Our other options is paying the lump sum off the mortgage (variable rate) and staying put for another few years and trying to reduce the outstanding mortgage as much as we can.
 
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I only did my first ever income tax return on rental property this week so I am not an expert.
Essentially you have to calculate your income on the house ie rental payment, then take away your expenses and pay tax on the profit. If you make a loss you are not liable to tax but should still file a tax return, for traceabilty.
A couple of points to note, I dont think you can claim TRS at source on this property if its a rental. But you can claim wear and tear at 12.5% on furnishings. You can get a full list of allowable expenses on the revenue.ie website.
Also, go to the taxation section of this forum for further posts on this subject. You should move this post to there to get more replies.
 
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