Rental Query

Can anyone help me with this query?
A friend of mine has their house rented out and receives a monthly sum.
At the same time they are renting a house themselves in a 'better area'.
Can they offset the rent they are paying as an expenses against their rental income?

No, afraid not.

Are you sure?
In a commercial situation, if someone is renting an office and then they sublet it, they can offset rent payable against rent receivable.
It seems a bit unfair that the same does not apply in the above case.

Gillarosa is correct - your friend cannot offset rent paid on a rented home against rent received on the property they own and rent out.

They can offset interest due on mortgage repayments for the purchase of the property rented out against rental income from that same property - do a search on the forum and there's lots of info about what applies and the conditions attaching to offsetting that interest.

Sprite

Thanks. I'll have a look around the forum.

Liamos said:

Are you sure?
In a commercial situation, if someone is renting an office and then they sublet it, they can offset rent payable against rent receivable.
It seems a bit unfair that the same does not apply in the above case.

Click to expand...

In commercial situations the expenses are incurred in the course of a trade and may become allowable for tax. Rent of one's principal private residence is not an expense in the course of a trade. It is personal. Personal expenses are not tax deductible. ( in any jurisdiction as far as I am aware , not just here ) .