What expenses am I not allowed deduct?

The following expenses are not allowable for the purposes of reducing the taxable profits on your rental property:

• 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

 

We can help

TaxAssist Accountants offer Tax Return service specifically for landlords or those with second properties. By working with a professional to file your returns you can have peace of mind that everything is filed accurately minimising your risk of a Revenue enquiry into your tax affairs. It also ensures you do not pay any more tax than you need to.

Contact us today to book a free consultation about your tax return. 

 

 

Date published 5 Oct 2021

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.