1. Pre-rental expenses are not allowable, but white goods can be estimated based on current market value.
Correct on both counts. The white goods and other furniture are to be depreciated over 8 years.
2. Taxable rental income is the gross rental income minus expenses plus capital allowances at 12.5% over 8 years.
Can't remember offhand.
3. USC is charged on rental income after capital allowances and before expense deductions.
There can be USC in some circumstances, but also can't remember exactly how it's charged. It's just another tax to deter us investors, the ones they could really really do with, but we're the baddy landlords. Evil monsters who actually house people, in good accommodation in my case, if you don't mind my saying so.
4. Assuming taxed on higher tax rate, then for Jan to Dec 2014, the taxable rental income will incur 52% tax (41% income tax + 4% PRSI + 7% USC) in 2015.
You'll hit the higher income tax rate if you've other income. Adding up to around 50% when you add in the PRSI nd USC.
5. Rental deposit payments are not included in tax returns.
Of course, it's not an income, you have to pay it back !
6. 75% of mortgage interest is deducted from the gross rental income if registered with the PRTB - costing €90 if registered within the month of tenancy; or €180 retrospectively after one month. How is a retrospective application made e.g. if tenants have moved on, are PPS numbers and signatures still required.
Yes to 75%, yes you must be restered, those fees sound correct. Retrospective can be done, no idea how people manage this without PRSI nos. Signatures are not needed, it can be done online. I also know for some cases no PRSI is needed (asylum seekers of people new in the country)
7. Mortgage protection policy payments are allowable for rental tax income purposes.
Yes, as long at the policy known as term insurance - the cheap ones - or one that does not include any other benefit (like savings plan)
8. An overall rental loss will incur 4% PRSI + USC charge (if mortgage interest, expenses and capital allowances exceed rental income),
Not sure what this means.
9. Rental allowance is paid to occupier regardless if not used to pay for rental property occupied.
No idea what you're talking about? Is it the tax deduction tenants used to get, they did away with that.
10. Preliminary tax is required if rental profit exceeds €3174 and is based on the income paid for the previous year.
Can't remember but sounds right.
11. A loss on one Irish rental property can be off-set against another Irish rental property.
Yes. Uneconomic lettings are not allowed however.
12. An audit by Revenue will require expense receipts for the previous four years.
I thought you'd to keep records for 6 years. I've mind since the year dot. This is the best bit of advice you will ever get.
13. After six months of occupancy, a tenant is allowed to stay 112 days in the premises after notice given by owner.
Not a clue. Don't care whether my tenants come or go. They mostly stay. Currently it's a great market, haven't had a moving tenant since I can remember. I've no leases, don't care about notices from tenants or anything as long as they don't do any damage (we're not talkign about the never ending shares I should have in Magnolia, or all the plumbers I know in Ballygobackwards) . Leases on paper are worthless. One tenant once asked me for a lease.
14. Tenants may occupy a property without paying rent until a decision has been made by the PRTB.
God help you if a tenant is taking you to the PRTB or if you've decided to waste your time going there as a landlord to get a tenant out. I'm for bribary myself. Or taking the hit maybe. Fingers crossed this day will never come to pass.
15. Property tax is not an allowable rental expense.
Apparently so. We've had reams of arguments on this on here. Or was that the NPPR. Same difference. I claimed the NPPR, poster accountant Tommy McGibney disagrees with me.
16. Water tax (when paid by landlord) is an allowable expense.
I am on non speaking terms with Irish water. You want to see the emails they sent me back, the worst utility I've ever had the misfortune to deal with. I might add to a post elsewhere on this. Let's be clear however, I'm no water protester, they are anarchists. I'm actually all for water charges.
17. When a tenant vacates a property, expenses can be claimed while a replacement tenant is being sought.
Yes. Not sure how revenue treats it if it's a long time. I know from poster on here and elsewhere that some people who bought holiday homes in Leitrim etc that some of them are unrentable.
18. When making a tax return, savings are liable for dirt tax + USC.
What savings?
19. If lump sums have been paid against the mortgage, then mortgage protection policy payments can be reduced.
You mean you'd need less insurance and then you'd have to change your policy. Not a good idea.
20. There is absolutely no government incentive to let a property or to save for the future.
Give us the figures and you'll see if it makes sense. Probably not. If you'd bought in Dublin a couple of years ago, you'd be winning on two fronts, high rents and capital appreciation, and if you'd really timed it right, no CGT. I looked into it, not Dublin, but it still wasn't worth it. But I'm what BB would say is overexposed to one asset class. (only small time mind)
So now in reciprocation, what is it you're planning on doing?