# Deductable expenses against rental income



## gilboy (24 Jul 2008)

Hi 

The revenue state that you can offset any cost relating to insurance for fire, public liability etc. 

Does anyone know if you can offset insurance that you may have on the furniture and fittings and secondly life assurance policies you may have on the property

Thanks


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## ClubMan (24 Jul 2008)

Is this not covered in the _Property Investment FAQ_, key posts and many existing posts on what expenses can be set against rental income?


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## gilboy (24 Jul 2008)

It mentions insurance alright. But I was wondering about life assurance policies that you may be paying in relation to the rented property


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## ClubMan (24 Jul 2008)

Did you look at _Revenue _booklet _IT70 _- Appendix 1?

Just curious - why do you have (mortgage protection?) life assurance on the rental property? It's only mandatory for a _PPR_.


> Appendix 1
> The text of the Article in Tax Briefing, Issue 53 on Mortgage
> Protection Policy Premiums is as follows:
> Allowable deductions under the tax law relating to rental income are provided
> ...


Obviously you should get professional advice if in doubt about any of the tax issues relating to the rental property.


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## gilboy (24 Jul 2008)

Sorry clubman, did not notice it previously in the appendix.

I'm aware that the mortgage protection life assurance is not mandatory for 2nd property, however I feel more comfortable having it plus I can offset against tax liability
Thanks


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## Luternau (24 Jul 2008)

IMO life assurance would not be a qualifying (deductable) expense - its not an essential 'cost'  incurred in letting or maintaining a rental property. If on the other hand a bank were to insist on you having it for say health / medical reasons, then I am sure the Revene would regard it as a qualifying expense.


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## ClubMan (24 Jul 2008)

Did you read the _IT70 _extract quoted above?


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## Luternau (25 Jul 2008)

Sorry Clubman-I did not.I just scrolled on past it thinking it was just the list of standard qualifying expenses(Fixtures/Mgt fees/Interest/repairs etc-I now know term assurance (mortgage linked) is included.


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## Bronte (25 Jul 2008)

The two insurances that are allowable are house insurance (fire, theft, fixtures, fittings and furniture) the other is the life assurance known as a term insurance, it is the one that decreases in value as the mortgage goes down.  Previously revenue did not allow this but have changed their minds as most property owners have to purchase it as a condition of their mortgage.


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## ImARebel (27 Aug 2008)

Sorry for hijacking the thread but rather than starting a new one said I'd post here

Are legal fees deductable. These legal fees were incurred whilst bringing our builders to court to get them to repair the roof of the rental property

and following on from that we had to employ an engineer to carry out an inspection and oversee repairs - would this also be deductable?

I know legal fees for evicting tenants, non payment of rent etc is allowed. Just wondering if the above scenario would be allowed.

(Note: We did live in the property for while before renting but the repairs were carried out after we'd moved out ie while it was rented)


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