Tax liability

[pinarello]

Hi there - I have a query that I have already tried to clear up with revenue but have been left a bit confused.

I bought a property as a first time owner occupier in September 2004 for 315k and paid stamp duty at 3.75%. I rented out the property in July this year and registered with the PRTB

My question is will the clawback stamp duty be the difference between what I paid and the investor rate at the time (does anyone know what that is)

Secondly after I called revenue they said I dont have to do a tax return until October 2007 and not the end of this year. They also said the full amount of interest I pay per month on the mortgage is not tax deductible. Is this true

Any help appreciated

James

 

[CCOVICH]

My question is will the clawback stamp duty be the difference between what I paid and the investor rate at the time (does anyone know what that is)

According to the [broken link removed], the higher rate at that time was 5%.

They also said the full amount of interest I pay per month on the mortgage is not tax deductible. Is this true

Well I'm no expert, but I would imagine that you have to separate the capital and interest elements of your repayments, i.e. only interest is allowable as an expense.

 

[antoinolacht]

I don't think the interest is tax deductible, because you didn't take out the loan for the purpose of investment, but I could be wrong.

 

[Pegasus]

The interest on the loan(s) borrowed for the house will be ok for rental income purposes - however you may have an issue with tax relief on the interest on your PPR which is now given at source (TRS), if you were receiving this relief at source from your mortgage repayment after you had rented it out.