I have quite a few rental properties and I was considering leaving one vacant for two years.
Property A (Vacant) | Property B (Not vacant) | Property C (Not vacant) | |
Rent | €0 | €20,000 | €20,000 |
Deductible Expenses: | |||
Mortgage Interest | €0 (See note 1) | €10,000 | €10,000 |
Case V Profit / Loss | €0 | €10,000 | €10,000 |
That's not the reason. You simply can't claim a deduction for any cost incurred in relation to a property which has not been made available for renting, against taxable rental income received on other properties. This applies regardless of the nature of the rental property involved, for example if 2 commerical units are mortgaged but only one is rented in a given period.Wow!
Because it's not registered then they can't claim the mortgage interest.
Correct.I presume that they can't carry the mortgage interest forward against future rental income either?
Property A (Vacant) | Property B (Not vacant) | Property C (Not vacant) | Property D |
Rent | €0 | €10,000 | €20,000 |
Deductible Expenses: | |||
Mortgage Interest | €0 (See note 1) | €15,000 | €10,000 |
Case V Profit / Loss | €0 | (€5,000) | €10,000 |
In the case of residential properties, such a scenario can only be regarded as either hypothetical or bogus for the foreseeable future, Brendan.But if I have three properties available for rental and can't find a tenant for one of them, does the loss not reduce my Case V income?
Do revenue ask? What are the 'acceptable' reasons for voids?reason for the void
Expenditure between lettings:
Allowable expenditure incurred in the period between the termination of one lease and the granting of another lease by the same landlord is deductible provided the landlord was not in occupation of the premises during that period.
It’s a fair question from @torblednamScenario above is by way of a question, not a case study.
As is mine!fair question
There is rarely if ever any list of anything "acceptable" as far as Revenue are concerned and when there is they are apt to change it at the drop of a hat, sometimes with retrospective effect as happened a number of times in the past decade over what was allowable and non-allowable for R&D credit claims.As is mine!
Is there a list of 'acceptable' reasons for voids?
Thats what I thought.caveat emptor and hope for the best
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