Remortgage of investment property - tax claim implication

[hakouna]

Hi ,

I am planing to remortgage my investment property due to some personal financial difficulties . Currently there is around 50K mortgage left on my investment property , if I remortgage it and release some equity , it will probably be around 200K mortgage on this property.

My question is , would I still be able to claim 75% of the interest of the 200K of my mortgage as an expense ?

I spoke to revenue and they advised I would be able to claim the 75% of the 200K interest as an expense in my form 11 next year . however , I spoke to an accountant he said you will be able to claim 75% of 50K only of the 200K ( not all the 200K) as this was the money used to buy the property in first place ?

Anyone here have been through this before ? Can I get an advise please ?

Thanks

 

[Joe_90]

If the mortgage is €50k before remortgage to €200k then you will be entitled 75% of 50/200's of the interest in the future as a deduction against rent on the property.

 

[Bronte]

Get the revenue person you spoke to back on the phone and ask them for that peach of a reply in writing.

No of course you can't deduct the interest. Listen to your accountant.

Just curious, will the bank give you the money?

 

[hakouna]

Thanks Joe and Bronte , I asked that person in revenue for official reply , she advised to send email to revenue , no reply yet .

I will use that money to pay for other loans .

Thanks

 

[Gordon Gekko]

Unfortunately the people who answer the phones generally haven't a clue...you can get some gems from them (like this one).

 

[T McGibney]

In any event, even written Revenue "advice" isn't worth zilch as they routinely disclaim all such guidance (erroneous or otherwise) whenever it suits them.

 

[Bronte]

In any event, even written Revenue "advice" isn't worth zilch as they routinely disclaim all such guidance (erroneous or otherwise) whenever it suits them.

But they do tend to be more careful with the replies! And on the two questions responded to had no disclaimers. ( it took ages for a reply though.)

Erroneous advice helps one presumes in audits and negotiations on penalties etc?

 

[T McGibney]

But they do tend to be more careful with the replies!

Maybe, maybe not.

And on the two questions responded to had no disclaimers. ( it took ages for a reply though.)

That means nothing. They don't do specific disclaimers because they don't have to.

Erroneous advice helps one presumes in audits and negotiations on penalties etc?

Once you find yourself negotiating a penalties settlement, you've lost.