# First time landlord: interest allowable as an offset to rental income is 75%?



## Grimy (23 Oct 2010)

Hi - First time landlord here. Could someone clarify for me that the interest allowable as an offset to rental income is 75% of just the interest portion of the mortgage repayments? i.e. not the full monthly repayment (where mortgage is not interest only)?
Cheers,


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## Bessa (23 Oct 2010)

You are correct. It will probably be a lot less after the budget.


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## twofor1 (23 Oct 2010)

Grimy said:


> Hi - First time landlord here. Could someone clarify for me that the interest allowable as an offset to rental income is 75% of just the interest portion of the mortgage repayments? i.e. not the full monthly repayment (where mortgage is not interest only)?
> Cheers,


 
Interest - Relief is due for 75% of interest paid on loans to purchase, improve or repair a residential premises (some exceptions).http://www.revenue.ie/en/tax/it/rental-income.html#section2


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## Howitzer (24 Oct 2010)

And when your tenancies are registered with the PRTB. Otherwise it's zero.


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## j26 (26 Oct 2010)

As an add on to this question, if a person remortgaged their main residence to purchase an investment property o), would 75% that portion of the home mortgage that was used to purchase the investment property be allowable against tax?


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## geri (27 Oct 2010)

Is the 75% applicable from Apr 09, with 100% of interest charged deductible from Jan-Mar 09?
Cheers,
Geri.


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## Inca (27 Oct 2010)

geri said:


> Is the 75% applicable from Apr 09, with 100% of interest charged deductible from Jan-Mar 09?
> Cheers,
> Geri.


 
Correct - that is my understanding. 
75% from 01/01/11 to 31/12/11 unless this changes in the upcoming budget!!! Unbelievable, they take your stamp duty and then undermine you!


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## shej (28 Nov 2010)

In the four year plan has all the relief been scrapped?


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## saintstephen (29 Nov 2010)

I think the interest allowable expense works out as 82.5% for the 09 tax year.
75% for 2010



shej said:


> In the four year plan has all the relief been scrapped?


 
Not so far, but it is expected, I sincerely hope its not touched. 
I it stays then the focus should shift to the election, Labour has said they will scrap it, FG have said they will keep it at 75% who knows in a coalition.


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