Dividing rental income

Put your next buy-to-let property into the joint names of yourself and your spouse/registered civil partner as tenants-uncommon. The rental income can then be divided between you and the spouse/registered civil partner according to the proportion of the property you each own, eg 70%: 30%. The lower earning spouse/partner can take the bigger share and use their starting and basic tax bands against the majority of the profits from the property. You must declare your actual shares in the property to the Revenue on Form 17.

These tax deductible expenses from the rental income may include interest, tax, casualty losses, maintenance, utilities and depreciation. This effectively reduces the rental income. You are considered to use a place as a home if you use it for personal purposes during the tax year for more than the greater of: 14 days or 10% of the total days it is rented to others at a fair rental price. If the dwelling place is used both for getting rental income and for personal use, you generally must divide your total expenses on your tax return between the rental income use and the personal use based on the number of days used for each purpose. If you are a real estate dealer, rent received in the course of your trade or business is included in self employment income on your tax return.