ChatterBank0 min ago
Planning to Rent a Property
I'm thinking of moving back home and renting my property out to tide me over cash wise. I have a couple of questions.
1. If I start renting the property from, say, the 1st December 2008. When will I have to file my on-line Tax Return?
2. Do I file this just once a year or twice?
3. What happens when I move back into the property? Do I just stop filing the tax return? How will they know I have moved back?
4. I understand you can deduct expences, I also heard something that you are only taxed on the interest only amount of your mortgage? Can this be explained more please. I have a C&I mortgage
1. If I start renting the property from, say, the 1st December 2008. When will I have to file my on-line Tax Return?
2. Do I file this just once a year or twice?
3. What happens when I move back into the property? Do I just stop filing the tax return? How will they know I have moved back?
4. I understand you can deduct expences, I also heard something that you are only taxed on the interest only amount of your mortgage? Can this be explained more please. I have a C&I mortgage
Answers
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1 Ring the tax office, they will tell you what to do.
2 We only had to do it once a year.
3 Let the tax office know,
4 You are allowed to claim 10% off the rental income and for repairs, Your mortgage will stay the same. You must ask your mortgage company for permission to let and your insurance may not cover tenants so check with them as well.
I would recommend that you take out letting insurance as well. It covers you for lost rental if the tenants do a 'moonlight' and for legal expenses if they don't move out when you want them to!
2 We only had to do it once a year.
3 Let the tax office know,
4 You are allowed to claim 10% off the rental income and for repairs, Your mortgage will stay the same. You must ask your mortgage company for permission to let and your insurance may not cover tenants so check with them as well.
I would recommend that you take out letting insurance as well. It covers you for lost rental if the tenants do a 'moonlight' and for legal expenses if they don't move out when you want them to!
You'd have been better in the 'Business & Finance' section for this.
1. Your 1st tax return will be for the year ending 5th APril 2009 and must be filed before 31st January 2010.
2 . You only ever file a tax return annually. However, if you are making enough money doing it you might be required to make tax payments on account twice per annum. (January and July).
3 - You would inform the revenue on the tax return (or you could write to them specifically). It won't necessarily mean they stop sending you a tax return to complete though and, if they send you one you MUST complete it, you don't only do so if you have non-employment income.
4 - I'd need to check but I think you can either take an accepted percentage of the rent as repairs or actually total up genuine expenses to arrive at a figure if it's more advantageous. It's a while since I've done such a tax return, I used to do them for my sister when she rented her house out but she sold it about five years ago now, You aren't "taxed" on your mortgage at all (How could you be taxed on a cost?) but you used to be able to claim the interest element of your mortgage payments as an allowable expense against the rental income. Not sure you still can though.
1. Your 1st tax return will be for the year ending 5th APril 2009 and must be filed before 31st January 2010.
2 . You only ever file a tax return annually. However, if you are making enough money doing it you might be required to make tax payments on account twice per annum. (January and July).
3 - You would inform the revenue on the tax return (or you could write to them specifically). It won't necessarily mean they stop sending you a tax return to complete though and, if they send you one you MUST complete it, you don't only do so if you have non-employment income.
4 - I'd need to check but I think you can either take an accepted percentage of the rent as repairs or actually total up genuine expenses to arrive at a figure if it's more advantageous. It's a while since I've done such a tax return, I used to do them for my sister when she rented her house out but she sold it about five years ago now, You aren't "taxed" on your mortgage at all (How could you be taxed on a cost?) but you used to be able to claim the interest element of your mortgage payments as an allowable expense against the rental income. Not sure you still can though.
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