# Declaring Rental Income



## wtr11 (11 Apr 2012)

Hi,
I hope someone can help because the more i read revenue.ie the more confused I get!
As I have been renting out my apartment for the latter part of 2011, I need to declare the rental income. I’ve found lots of useful info on the website but some of it is confusing. When talking to a rep from the tax office, I was told to complete From 11, however as I am a PAYE employee I think Form 12 is what they might have meant?

Anyway my main query is around what expenditure can be deducted, and more specifically around the following 2:

“Interest on Borrowings” – does this relate to interest I’m paying on my mortgage, and how is this calculated? 

“Wear and Tear”, according to revenue.ie, for expenditure that incurred on or after 4 December 2002 the allowance is 12.5% of the expenditure per annum for eight years………does this mean for any appliances/furniture etc that I purchased after the above date, I calculate 12.5% of it and include as a deduction? Where does the 8 years come into it?

Thanks for your help!


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## marypoppy (11 Apr 2012)

Its form 11 for any revenue over PAYE
It is your mortgage interest and you should get a yearly statement from your bank stating the amount of interest paid. 
12.5% of any appliances/furniture bought. You can claim this for 8 years.
You can only claim interest/expenses for the months that the apt. was occupied by a paying client.


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## MeathCommute (12 Apr 2012)

You also have to register with the PRTB. Failure to do so will mean that you cannot deduct mortgage interest as an expense against rental income. I am open to correction on that


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## wtr11 (12 Apr 2012)

Thanks for both your replies.
I have registered with the PRTB.

Just so I’m clear.  If I paid for example 9000 in mortgage interest during 2011, I just take it that 75% of it is deducted from my rental income as an expense?  

Wear and Tear – is this just for appliances/furniture bought _during_ the rental period?

Thanks.


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## Gervan (12 Apr 2012)

wtr11, as you only started renting out in the latter part of 2011, you can only deduct 75% of the interest for that portion of the year.
So if it was the last 3 months, you would have €9000 x 3/4 x 1/4 interest expense.


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## Bronte (16 Apr 2012)

wtr11 said:


> Wear and Tear – is this just for appliances/furniture bought _during_ the rental period?
> 
> .


 
No, furniture already there can be claimed.  Put a realistic value on them.


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## Omega (10 Jul 2012)

Where, exactly, on the tax return form does one claim for items under the heading “Wear and Tear”? Is it under Repairs? Thanks.


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## mandelbrot (11 Jul 2012)

Omega said:


> Where, exactly, on the tax return form does one claim for items under the heading “Wear and Tear”? Is it under Repairs? Thanks.



It's claimed under Capital Allowances. So for 2011 returns: 

Form 11 / Form 11e - Panel 208
Form 12 - about 2/3 of the way down section 15


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## viztopia (11 Jul 2012)

Also worth mentioning that if you had to take out life assurance to get the loan to buy the property this can be claimed for. Income protection insurance can not be claimed for.


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