Tax on rental income

H

HouseHunter

Registered User
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Can anyone advise if you have to pay tax on your rental income if the rent received does not even cover the mortgage?

We have just let our home out and are about to emigrate to Australia. The rent we are receiving is 100 less per month than the mortgage payment.

This doesnt even take into account service charges, waste charges, general maintenance etc
 
Is it an interest only mortgage or a repayment mortgage?

If it's interest only then there would be no tax due for 2009.

In the future this will change as the 100% relief was abolished and is now 75%.

If it's a repayment mortgage there's a good chance you owe tax for 2009 as the relief only covers interest on the mortgage, not the repayment of the capital itself!
 
Well then you will have a small tax liabilty or a loss (no tax liability) for 2009.

You need to read the "revenue guide to rental income" and read the many threads here and generally inform yourself about the basics of what is and what is not taxable and the many deductions you can make and then ask specific questions, to which folks will gladly help. General sort of "how much tax do I pay?" type questions usually get ignored.

HTH and best of luck and a tip....keep EVERY receipt in relation to the property. You must keep them for about 7 years for revenue.

http://www.revenue.ie/en/tax/it/leaflets/it70.pdf
 
If you haven't registered with the PRTB you are not entitled to the interest relief, which has been reduced to 75%. Also don't forget to pay the property charge of 200 or you could be facing a hefty fine when you return.
 
They have only just let out their property so they still have time to register with the PRTB - OP, just be careful to make sure this is kept up to date in the furture or you will be unable to claim the interest relief.
 
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