Rent-a-room relief
Rent-a-room relief applies to the gross amount of income received up to €14,000 for the rent of a room or rooms in your home. The gross income is the total income before you deduct expenses.
Expenses include the maintenance of the room let and capital allowances due on fixtures and fittings.
If your gross rental income does not exceed the above exemption limit, you do not pay Income Tax (IT), Pay Related Social Insurance (PRSI) or Universal Social Charge (USC).
If it does exceed the exemption limit, the total amount of income is taxed.
You cannot claim the relief against income received for the use of the room(s) from:
- your child or civil partner
- an employer
- an employee
- short-term guests, including those who book accommodation through online booking sites.
The relief can apply to lettings used as residential accommodation for students in an academic year or term.
Subject to qualifying conditions
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie