LPT tax deductible as rental expense

T

trigger3

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Is the LPT a deductible expense when calculating rental profits? I've tried searching the revenue website and can only get the following excerpt from February 2014:


9. I am a landlord and have paid Local Property Tax (LPT) on my rental properties. Is the LPT that I paid an allowable deduction against rental income?

The Government has accepted in principle the recommendation in the Thornhill Report that LPT be a deductible expense in calculating a landlord’s taxable rental income and that the deduction be phased in over a number of years with the start date being determined by the economic and budgetary situation. However, the Government has not yet decided to bring the deduction into effect. Until the necessary amendment is made to section 97 of the Taxes Consolidation Act 1997, LPT is not a deductible expense and therefore should not be claimed as a deduction when submitting your Income Tax/Corporation Tax Return for 2013.

February 2014
 
That excerpt answers your question - LPT is not currently a deductible expense.

It should be but isn't.
 
No, not yet.

Minister Noonan has stated on more than one occasion that the Government has agreed in principle that LPT should be deductible but has not considered the manner or the timing in which this will happen.
 
Frankly outrageous that Noonan agrees it should be deductible yet does nothing to make that happen. Another example of what's wrong with the rental market and highlighting the hypocrisy in the rental market. What does this lead to? Yes upward pressure on rents as people seek to recover costs. Just more tax from the rental sector ultimately penalising tenants and good landlords.
 
It's quite likely that it is deductible as an expense of management of the property but Revenue and politicians have played silly buggers in pretending otherwise ever since the LPT was introduced and the issue isn't big enough to prompt anyone to test it in front of the Appeal Commissioners or in the courts.
 
T McGibney said:
It's quite likely that it is deductible as an expense of management of the property but Revenue and politicians have played silly buggers in pretending otherwise ever since the LPT was introduced and the issue isn't big enough to prompt anyone to test it in front of the Appeal Commissioners or in the courts.
Click to expand...

Wrong, I deduct it and I'm willing to go in front of the appeal commissioners if I'm audited.

And thanks for another argument.

By the way, I thought the appeals process has changed from the A commissioners.
 
The Appeal Commissioners still exist but the service has been reformed and formalised. I agree with you Bronte on the LPT deductibility.
 
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