interest paid prior to first letting

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xt40

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does anyone know if interest paid on a newly purchased property before it is first let can be used against the eventual rent. eg
property bought sept- year1
first tenants move in april - year2
empty in between due to inability to find suitable tenants.

the revenue website doesnt mention this specifically as being disallowed but my gut feeling is that itwould be treated as pre-letting expenses and therefore not allowed.
 
I think you're right, that it'll count as a pre-letting expense. I'm nearly sure that the proper approach is to keep full records of it and, along with the initial transaction expenses (including stamp duty, legal fees, etc.), to deduct it ultimately against any capital appreciation when you finally sell the property thereby reducing your capital gains tax liability.

So long as they know you're trying keep everything straight, Revenue staff are, in my experience, very helpful indeed on queries like this, so do ring and ask if no-one here can give you a categoric response.
 
Interest paid on your mortgage before your first letting is NOT allowed as an deductable expense.

It's quite clear from revenue site what pre-letting expenses are allowed.
 
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