Can I charge flight travel to Ireland, accommodation, rental car and meals against my rental income if these are all incurred to deal with a property. Normally I incorporate my trips into holiday time but this year I had to come back in January to deal with a rental property and nothing else. Do revenue allow this? Would it come under the 'wholly and exclusively' rule?
Rental income - can travel be considered an expense
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ubiquitous
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No.
ubiquitous
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The Revenue stated some years ago in Tax Briefing that they would not allow travel expenses as a deduction against rental income.
"I sometimes travel to my property to inspect it or to carry out repairs. Can I claim travel costs such as airline tickets and car hire?
The cost of travelling to your let property is only allowable if the journey is undertaken wholly and exclusively for the purposes of earning rental income from the property. There can be no element of private purpose whatsoever. For example, if you or your family also use the opportunity to take a short break or a holiday or to inspect a property that you do not already own and let no part of the travel cost is allowed."
Thanks for the reply, I found this in the tax briefing 8/11/07 so I think I can charge it up, I'll certainly try and I'll write a letter to the revenue when I'm doing my tax returns to see what they say. My last trip had no private purpose whatsoever and was only to deal with my rental property. Maybe there is something I'm missing in my understanding.
The cost of travelling to your let property is only allowable if the journey is undertaken wholly and exclusively for the purposes of earning rental income from the property. There can be no element of private purpose whatsoever. For example, if you or your family also use the opportunity to take a short break or a holiday or to inspect a property that you do not already own and let no part of the travel cost is allowed."
Thanks for the reply, I found this in the tax briefing 8/11/07 so I think I can charge it up, I'll certainly try and I'll write a letter to the revenue when I'm doing my tax returns to see what they say. My last trip had no private purpose whatsoever and was only to deal with my rental property. Maybe there is something I'm missing in my understanding.
ubiquitous
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Be careful when/if doing so. Most professionals in the field would warn you that you are exponentially increasing your chances of being selected for Revenue audit
if you frame your query as an "expression of doubt" on your tax return, and/or the Revenue treat it as such, although Revenue will deny this.Dont write a letter, just claim it. If its an allowable expense you dont have to justify it with a letter as long as you qualify legitimatly for it.