Any info? It's mortgaged...And how much "tax" or such would I have to pay?
2007-03-07 09:04:36 · 6 answers · asked by Bobby P 1 in Business & Finance ➔ Renting & Real Estate
If you are in the UK, you need to get permission from your lender and the comments from the others are relevent in respect of insurance.
You would be liable to income tax on any profit you make from the letting. You work out your profit by taking the total rental income for the year and deducting all the expenses incurred in the letting, eg agents fees, mortgage interest, insurance, repairs, plus 10% of gross rents if you let the property furnished.
Keep proper records of income and expenditure and notify HMRC at the end of the tax year.
From what I see and hear, you shouldn't expect 100% occupancy and its not a way to make big money if you have a substantial mortgage.
2007-03-07 17:46:18 · answer #1 · answered by fengirl2 7 · 0⤊ 0⤋
You did not mention the country. There are different rules. In some cases you will need the permission of the lender before you could rent the property. That is not the case in the US.
Assuming the US...
It matters little that the property is mortgaged.
You take in the income (rent) and off-set it against expenses (interest, taxes, repairs, management are the main ones). You also have paper losses in the form of depreciation.
If there is any income left after all real and paper losses then you pay tax on that income.
Note that you get to deduct the interest paid towards the mortgage but not the principal you might be paying each month.
2007-03-07 10:26:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I don't have the answer to your question, but I wanted to mention the insurance on your home. For your home to be covered properly with a tenant in it, you need a landlord policy on your home. Most mortgage companies do not like to see that if your loan is a personal loan. I would suggest talking to your agent & your bank to find out what you need to do. Good Luck!
2007-03-07 09:14:24 · answer #3 · answered by Sunshine 1 · 0⤊ 0⤋
Talk to your bank/ building society. They may give you a cheaper mortgage. You will have to change your insurance cover. income will be taxed but of course you will have expenses won't you . . . . . Talk to them they will not think you are trying to do anything odd.
2007-03-07 09:14:54 · answer #4 · answered by Richard T 4 · 0⤊ 0⤋
|Do you want to make money, or cover your mortgage?
2007-03-07 09:15:05 · answer #5 · answered by stuart d 4 · 0⤊ 0⤋
do you thing.......
2007-03-07 11:20:56 · answer #6 · answered by ron d 3 · 0⤊ 0⤋