Rental Income

Renting out a property can have some tax issues which you need to be aware of.

If its a property you bought and are getting mortgage interest relief on, you will loose this relief.

However the interest you are paying is a taxable expense, and can be offset against any rental income you get on the property. You must inform the private residential tenancies board to claim this expense.

Other expenses that can be used to reduce your tax bill on this income include any management fees on the property, capital expenditure for furniture & fittings (written off over eight years) and also the cost of maintaining the property to be suitable for renting.

Other tax issues that arise from renting including stamp duty. If you rent out the property within 2 years of buying it you will be faced with revenue clawing back stamp duty relief. To avoid this you could opt for the revenues rent a room scheme. Here you can rent out part of your propery and avoid the stamp duty issue.You also can earn €10,000 tax free with this scheme.

If you decide to just rent out the property fully you must make an annual return on ths profit made by you and you will be liable for income tax.

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