What expenses can I deduct against my tax bill on an investment property?

• Rents you pay for property such as ground rents 
• Insurance premiums against fire and public liability
• Maintenance of your property such as cleaning, painting and decorating 
• Property fees before you first rent out your property such as management, advertising, legal or accountancy fees 
• From 2018 a new deduction of up to €5,000 per property for pre-letting expenses of a revenue nature are allowable subject to the property being vacant for a period of 12 months or more. 
• The cost of any service or goods you provide that do not get repaid by your tenant such as electricity, central heating, telephone, service charges, water and refuse collection 
• Certain mortgage protection policy premiums
• Wear and tear of furniture and fittings (known as capital allowances)
• Repairs, such as rot treatment, mending windows, doors or machines
• Mortgage interest: from 1 January 2018, you can deduct 85% of the interest paid on your mortgage on a rental property. For 2019, the figure has increased to 100%

 

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Date published 20 Aug 2019

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.