Mortgage Interest on rental properties

Mortgage interest on rental properties

If you rent out a residential property, you can offset only 75% of the interest on the mortgage that was used to buy that property against the rent from that property.

However last years budget now provides that landlords who undertake to rent residential property for a period of 3 years to tenants in receipt of social housing supports may, notwithstanding the general 75% interest restriction, deduct the balance of the interest accrued in each year of the 3 year period as an expense in computing subsequent taxable rents. The rolled-up interest balance (i.e. 25% for each of the 3 years) will be treated as falling on the day after the end of the 3 year period.

Any queries on same give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie