When to pay tax on rental income

I get rent of 1200 a month which I pay 800 for the mortgage, so 400 profit a month , 4,800 a year profit,
how do I calculate tax I have to pay, Do I pay 41% on profit which is the tax bracket I am on. I know I can deduct insurance which is 500E a year and 12.5 % for wear and tear, have looked at revenue site but not straight forward to follow. When is tax to be paid thanks,

How much of the 800 is interest? You can only deduct the interest, and then only if you're registered with the PRTB. Are you registered with the PRTB?

tax is due by 31st October, along with your tax return

Howitzer said:

How much of the 800 is interest? You can only deduct the interest, and then only if you're registered with the PRTB. Are you registered with the PRTB?

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It is an interest only mortgage ,I am registered

Do I pay 41% on profit which is the tax bracket I am on

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Yes, Did you not look into these details before you jumped in

have looked at revenue site but not straight forward to follow

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If you don't understand what can be deducted then I suggest you get an accountant to sort out for you. (His bill is also deducted from rental income. What can be deducted is realitively straightforward.) It could save you money and you would be fairly certain that the tax amount is correct.

You may have difficulity getting an accountant to look at your situation now as they are all extremly busy so you could look at
[broken link removed]

I trust [broken link removed] is the revenue site you looked at

I think I can work it out,the 500e for the insurance and then take away 8,000 for the interest , then12.5% x 14,400,= 1750
14,400 - years rent
8,000 -years interest
1,750 - 12.5%
500 - insurance
---------
4150 tax 41%= 1701.

Is this correct, Thanks


es, Did you not look into these details before you jumped in



If you don't understand what can be deducted then I suggest you get an accountant to sort out for you. (His bill is also deducted from rental income. What can be deducted is realitively straightforward.) It could save you money and you would be fairly certain that the tax amount is correct.

You may have difficulity getting an accountant to look at your situation now as they are all extremly busy so you could look at
[broken link removed]

I trust [broken link removed] is the revenue site you looked at[/quote]

Your rental return will look something like the following

Rental Income ...................................... 14,400

Less Interest ............................9,600
...Insurance ...............................500
...* Wear & Tear .......................1,250
...Accountants Fees .....................200
...Other ....................................1,000
Total Exps .........................................12,550

Profit from Rental income ........................1,850

Tax @ 41 %



* Wear & tear is calc as follows
Total furniture fixtures & fittings say 10,000
w/o over 8 years 12.5% of 10,000 = 1,250


I think you really need to talk to an accountant. Pay what you think now and talk to an accountant asap (end of nov) and sort out what you owe
then.

By 31 of october I pay for tax owing end of 2006 is this correct, and for 2007 I pay 2008

asdfg said:

Your rental return will look something like the following

Rental Income ...................................... 14,400

Less Interest ............................9,600
...Insurance ...............................500
...* Wear & Tear .......................1,250
...Accountants Fees .....................200
...Other ....................................1,000
Total Exps .........................................12,550

Profit from Rental income ........................1,850

Tax @ 41 %



* Wear & tear is calc as follows
Total furniture fixtures & fittings say 10,000
w/o over 8 years 12.5% of 10,000 = 1,250


I think you really need to talk to an accountant. Pay what you think now and talk to an accountant asap (end of nov) and sort out what you owe
then.

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By 31 of october I pay for tax owing end of 2006 is this correct,

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Yes

Thanks asdfg you have been great help

asdfg said:

Yes

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Dodo, if you're unsure you should always overpay the tax. You can always get it back or subtract it from the next years profits. Also don't forget gardening costs, repairs, rates (bin charges) if you pay them for the tenant. Life insurance is also deductable if it's term insurance (reducing amount to equal mortgage owing type).

Bronte said:

Dodo, if you're unsure you should always overpay the tax. You can always get it back or subtract it from the next years profits.

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Only problem is you'll have to do your accounts properly at some stage to find out if you DID overpay! You're as well off starting off with your tax affairs in proper order and keeping them that way. Don't forget wear & tear allowance on your furniture too.