All Irish tax payers must prepare an annual tax return if you have rental property even if the Revenue hasn't asked.
Contact Allen Morrissey & Co. Tax Specialists
1. If you have RENTAL INCOME
There are many deductions you are allowed - these will reduce the tax you pay. They include:
- Rates
- Maintenance
- General expenses (excluding capital items)
- Insurance
- Advertising for Tenants
- Collection expenses
- Accountants fees
- Interest paid on loans to purchase, improve, or repair a residential premises
- Cost of any service or goods provided by the landlord, for which they do not receive a separate payment
- Legal expenses in drawing up leases
- Registration with Private Residential Tenancies Board.
- Wear & Tear allowances on capital items.
2. REPAIRS TO RENTAL PROPERY YOU OWN
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A repair means "the restoration of an asset by replacing subsidiary parts of the whole asset". Examples of common repairs which are normally deductible:
- Exterior and interior painting and decorating
- Damp and rot treatment
- Mending broken windows, doors, furniture and machines
- Replacing roof slates.
3. RENT A ROOM RELIEF
Did you know that you can rent out a room in your own home, and, you can charge rent of up to €10,000.00 without paying tax on the income. Don't forget:
- Rent in excess of €10k is taxed under the normal tax rules. But the deductions listed above can be deducted from the rental income, and the balance will be taxed.
- The Rent a Room Relief extends to capital gains tax cases, and won't affect stamp duty relief claimed for new or first time buyers.
- This Relief does not apply if the room is used by your child or parent, and only applies to Irish properties that you may own.
4. WEAR & TEAR
You can claim an allowance of 12
