John rents out a house that he occupies as his sole residence. He sub-let a room during 2018. His tenant paid him gross rent of €13,000.
While the room was sub-let, John spent €1,500 on repairs on maintaining the let room.
John qualifies for Rent-a-Room Relief for 2018 as his gross income from letting the room did not exceed the 2018 limit (€14,000).
The expenses of €1,500 are not taken into account as there are no deductions allowed for any expenses that have been incurred in connection with obtaining the income if the relief is granted.
On his Income tax form, John enters €13,000 as his income which is subject to Rent-a-Room Relief.