Have you heard of Rent a Room Relief?

A great little incentive for the home owners and tenants during this housing crisis, especially for the people living alone or wanting to make some extra money. Even if you don’t own the property you can still avail of this relief in most cases.
If you rent out a room (or rooms) in your home to private tenants, the rental income you earn will be exempt from income tax, provided this income does not exceed €14,000 in a tax year. If you qualify for rent-a-room relief, the income you get from renting out the room is not liable to PRSI, the Universal Social Charge or income tax. However, it must be included on your annual income tax return.
Rent-a-room relief will not affect your mortgage interest relief or your exemption from Capital Gains Tax (CGT) if you sell your home.
You will not qualify for the relief if:
Your gross income from rent and related services is over €14,000. In this case, Revenue will treat your rental income minus allowable expenses as part of your total income for tax purposes and should be included in your tax return;
You are renting the room in your home to your civil partner, son or daughter (but there is no restriction in the case of other family members);
You are an employee or office-holder in a company, and the company pays you to allow clients to use the room in your home on an occasional basis;
You are renting the room to short-term guests, for example, through an online accommodation booking site;
You do not have to register as a landlord with the RTB or provide a rent book to the tenant;

If the part of your home that you rent out is not self-contained (such as a converted garage attached to your home or a basement flat).

If you need more detailed info regarding this please don’t hesitate to PM us!

Peak Finance Solutions removes the hassle and confusion that comes from managing your tax burden effectively. Our tax services range from discrete, one-time advice to complete management and everywhere in between. We can help you to accurately file income and corporation tax returns, VAT returns; give you an advice on CGT/CAT implications & calculate your tax liability; deal with the Revenue on your behalf.

• Precisely identify and advise on possible tax savings
• Tax compliance services
• Gifts and inheritance tax planning

Assured advice you can count on:

Peak Finance Solutions brings the wealth of knowledge and wisdom gained through years of experience to assist your business in a precise and measured manner and to ensure we deliver the most relevant and beneficial tax advice for you and your business.