Rental property - allowable expenses for partial-year

I'm doing a tax return that includes income from a rental property (as a Landlord) for the first time.

As it was only rented for part of the year (2023) last year after I moved out, I assume I can only use Allowable Deductions such as estate management fees, home insurance, mortgage interest etc. on a pro-rata basis for the period for which it was rented e.g. August - December. Is that so?

Should the mortgage interest be based on the exact charges for the period in question or as a percentage of the year in total of the entire interest paid for the year (i.e. a third if it was rented for 4 months)?

Do I need to submit/upload receipts for all of this or just have a record/copy of them myself? Same question for proof of RTB registration and fee etc- do I need to supply details? (It is registered with RTB)

Thanks in advance for any help and/or other advice

The Revenue site has details of
what is allowed https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx
and what is not allowed https://www.revenue.ie/en/property/...tal-income/what-expenses-are-not-allowed.aspx

There is no need to submit/upload details but do keep them to hand in case of an audit

jpd said:

The Revenue site has details of
what is allowed https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx
and what is not allowed https://www.revenue.ie/en/property/...tal-income/what-expenses-are-not-allowed.aspx

There is no need to submit/upload details but do keep them to hand in case of an audit

Click to expand...

Thanks for the reply and for clarifying about receipts. I'm fairly familiar with the details of what is & what is not allowed to be expensed. Am I right in assuming the expenses will only be allowed for the period of rental rather than the full yearly cost?

funkel said:

I assume I can only use Allowable Deductions such as estate management fees, home insurance, mortgage interest etc. on a pro-rata basis for the period for which it was rented e.g. August - December. Is that so?

Click to expand...

That's right.

funkel said:

Should the mortgage interest be based on the exact charges for the period in question or as a percentage of the year in total of the entire interest paid for the year (i.e. a third if it was rented for 4 months)?

Click to expand...

The allowable mortgage interest deduction can be calculated as: # mths let / # mths of mortgage x interest x 100%.

The denominator in the above formula will most likely be 12, unless the mortgage was not in place for all of 2023. The deduction is available if the tenancy is registered with the RTB.

A couple of things worth mentioning:
- if you paid fees to Daft.ie to advertise the property, the full fees are deductible for 2023, naturally.
- capital allowances for wear and tear on furniture and fittings are available at 12.50% and do not need to be pro-rated.

AAAContributor said:

That's right.



The allowable mortgage interest deduction can be calculated as: # mths let / # mths of mortgage x interest x 100%.

The denominator in the above formula will most likely be 12, unless the mortgage was not in place for all of 2023. The deduction is available if the tenancy is registered with the RTB.

A couple of things worth mentioning:
- if you paid fees to Daft.ie to advertise the property, the full fees are deductible for 2023, naturally.
- capital allowances for wear and tear on furniture and fittings are available at 12.50% and do not need to be pro-rated.

Click to expand...

Thanks very much.