As per Revenue Irish Tax & Customs the following expenses can be ducted when calculating your rental income or losses:
- rents payable in respect of the property, e.g. ground rent,
- rates payable to a local authority in respect of the property,
- the cost of any service or goods provided and for which you do not receive separate payment from your tenant, e.g. gas, electricity, central heating, telephone rental, cable television, water and refuse collection,
- maintenance of the property, e.g. cleaning and general servicing, exterior and interior painting and decorating,
- insurance of the premises against fire, public liability insurance, etc.,
- management, e.g. the actual cost of collection of rents and advertising for tenants, legal fees to cover the drawing up of leases or the issue of solicitors letters to tenants who default on payment of rent. Accountancy fees incurred for the purposes of preparing a rental account may also be deducted,
- repairs, (a ‘repair’ means the restoration of an asset by replacing subsidiary parts of the whole asset). Examples of common repairs which are normally deductible in computing rental income include:
- damp and rot treatment,
- mending broken windows, doors, furniture and machines,
- replacing roof slates.
However, you may not claim a deduction for your own labour.
- interest on money borrowed to purchase, improve or repair the let property. As some restrictions apply to deductions for this expense, see Interest paid on borrowings
- certain mortgage protection policy premiums,
- expenditure incurred between lettings in certain circumstances,
- allowances for capital expenditure may also be available. Please refer to Wear & Tear and Tax Incentive Schemes.
All landlords must be registered with the PRTB, but the registration fee can be deducted against tax, you can also claim a deduction for wear and tear as a capital allowance. According to Barry Flanagan, tax expert at taxback.com “Capital allowances are one of the most valuable deductions which are commonly overlooked by landlords,”.
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