Taxation on Rental Income

I am going away for 12 months and i am planning to rent the house, but i am paying mortgage of 1200 euro and interest on it will be around 900 euro. I went to agent and it looks like i can't rent it above 750 euro.. So if rent the house, i lose 150 euro, plus agent fees and other maintenance costs. If i earn 60k in 2010, can i offset the losses against my earnings. Do i get the TRS, i am getting 900 TRS as i finished 7 years last year. Do i get this if i rent the house.

paddy75 said:

If i earn 60k in 2010, can i offset the losses against my earnings.

Click to expand...

No - rental losses are never allowable against other income. They can be carried forward for offset against future rental profits.

paddy75 said:

Do i get the TRS, i am getting 900 TRS as i finished 7 years last year. Do i get this if i rent the house.

Click to expand...

No, once you stop living in your current home.

You won't get TRS once you rent the property. However it is up to you to notify the TRS section of Revenue to stop the relief.

Rental losses may be set against future rental profits but not against other non-rental incomes.

Bear in mind that interest is only allowable at 75% as a deduction so your monthly could look something like this :-

Income 750
expense 675 ( 900 int x 75%)
profit 75 (before letting agent etc)

Also interest is only allowable once tenancy registered with PRTB.