What expenses am I not allowed deduct against my tax bill?

• Expenses incurred before the property is let, other than property fees before you first rented out the property such as management, advertising, legal or accountancy fees. From 01 January 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
• Post letting expenses, i.e. expenses incurred after the property has been let for the final time 
• Property improvements unless allowed under a tax incentive scheme
• Expenses on premises rented out on an uneconomic basis, e.g. where a property is being rented for below market value rent and is consistently making a loss year on year
• Mortgage interest from the time you buy the property up until it is first rented out
• Local Property Tax (LPT)
• Any cost for your own time/labour when carrying out repairs to the property

 

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Date published 28 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.