1. What is Rental Income Calculation?

The rental income calculation determines the net income from rental properties in Ireland by subtracting allowable expenses from gross rental income. This is essential for tax reporting and financial planning.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Rental Income — Total rental income before expenses (EUR)
• Allowable Expenses — Deductible expenses according to Irish tax law (EUR)

Explanation: This calculation provides the taxable rental income for Irish tax purposes.

3. Importance of Net Rental Income

Details: Accurate net rental income calculation is crucial for proper tax filing and understanding the profitability of rental properties in Ireland.

4. Using the Calculator

Tips: Enter gross rental income and allowable expenses in EUR. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What counts as allowable expenses in Ireland?
A: Typical expenses include mortgage interest (restricted), property tax, insurance, repairs, and management fees.

Q2: Is wear and tear allowance still available?
A: The wear and tear allowance was replaced with a new system in 2017 for new items.

Q3: How is rental income taxed in Ireland?
A: Rental income is taxed at your marginal rate after allowable deductions.

Q4: Can I deduct mortgage principal payments?
A: No, only the interest portion of mortgage payments is deductible.

Q5: Are there any special rules for short-term lets?
A: Yes, different rules may apply for properties rented for short periods (e.g., through Airbnb).