Rental income expenses

What expenses are allowed againt rental income?

You can claim certain expenses against your rental income to reduce the amount of tax you will have to pay.

General expenses

Allowable expenses include:

1. rates you pay to a local authority for the property
2. rents you pay for property such as ground rents
3. Mortgage interest if you registered with Residential Tenancies Board
4. insurance premiums against fire and public liability
5. maintenance of your property such as cleaning, painting and decorating
6. property fees before you first rent out your property such as management, advertising, legal or accountancy fees
7. cost of any service or goods you provide that are not repaid by your tenant (such as electricity, central heating, telephone, service charges, water and refuse collection)
8. certain mortgage protection policy premiums
9. expenses in between renting out the property in certain circumstances
10. capital allowances
11. repairs, such as rot treatment, mending windows, doors or machines
12. certain pre-letting expenses on vacant residential property
13. the cost of registering with the Residential Tenancies Board (RTB).

You must keep full and accurate records of all expenses for each property you rent out.

You may partly let a premises. You can only claim the portion of the expenses related to the part of the property that is let. For example if half the rooms are let, then half of the expenses can be claimed.

The receipt of rent is treated as the carrying on of a trade, and expenses are only allowed to the extent that they would be allowed for that trade.

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