Subdividing to rent:I will be dividing my house with a view to letting out the top half. The tenant will be a young family friend coming up to Dublin to study and she will be paying me a nominal rent - as yet undecided.

I am concerned about the income tax implications for myself as a PAYE worker near retirement. I am aware that landlords can write off a great deal of expenses against income tax. Which ones specifically apply to my situation?

That's difficult to say. In general, if a property is let on an uneconomic basis, then normal landlord expenses are not allowed and this would appear to apply to you given that you mention a "nominal" rent. Where a market rent situation is involved, a rental property is viewed as a business and landlords are allowed put relevant business expenses against their tax.

These would, for example, include the legal costs of drawing up leases, wear and tear on furniture and fittings, repairs and general upkeep, accountancy fees, advertising fees, etc. If a landlord supplies a service, such as gas and electricity, and is not reimbursed by the tenant, then that is a deductable expense.

However, if a landlord repairs a property himself, he is not allowed to calculate the cost of his own labour and consider that an expense. If you are primarily concerned with income tax issues, then perhaps you should consider the "Rent a Room" scheme whereby you would be able to receive rent up to €7,620 tax-free for renting out a room to your young family friend.

You could do that for your student's first year and, then if it works out and you and she wants the independence of a separate apartment within the house, then you might consider the considerable upheaval and expense involved in dividing a house. There is a chance that this living arrangement might not work out and, if so, under the "rent a room" scheme (together with some living together ground rules, such as use of the kitchen, etc) you will not have done any drastic rearrangement of your house to accommodate it.

Selling in Florida and tax

We will be selling my late father's holiday property in Florida. Could you advise on the expenses we might expect to pay?

Buying and selling costs in Florida are lower than here and you should find the process fairly straightforward. The biggest expense will be paying the real estate agent. This should amount to between 5 and 6 per cent of the sale price and you would be well advised to shop around for a sales agent (in person, flights to Florida are relatively cheap), as competition in that sector there is intense.

There is also a type of stamp duty called Documentary Stamp on the deed which will be $0.70 on every $100 of the value of the property.

You should also factor in other expenses such as removal costs, courier fees for documents, etc.

Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.

Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.