Renting property - Tax implications

P

proon

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All,
I am in thinking of renting out my house. I am wondering how things will work out with the taxman. I obviously want the house to be more or less coving itself, but I will to have to pay a few hundred a month to make up the difference. I expect to get 1300 per month when the house is rented.
I expect that there are costs that I can deduct in my tax return, but could somebody tell me what these might be? Can I deduct things like painting and decorating the house and furnishing etc? Can I claim even if I spend my own time doing some of the things? Also what is the story with mortgage relief?

cheers!
 
Refer to the following guide on www.revenue.ie it will answer most of your questions: IT 70 - A Revenue Guide to Rental Income
 
Generally speaking, any expenses incurred in the letting of the property are allowable as tax deductions.

The most common are:
Mortgage interest (but not any capital payments)
Agent's fees
Cleaning
Gardening
Repairs and decoration

However, pre-letting expenditure is not allowable.
 
PROON Beware the end game from the tax mans point of view and ensure you use all possible ways to mitigate CGT on the final sale of the property.Also consider that while renting your expenses will divide into capital expenditure and running repairs as far as tax is concerned,to offset any capital expenditure straight away,consider asking the tenant to pay for it and deduct it from the rent you receive IE no expenditure,no income no tax,but for instance new double glazed window fitted
 
plotman said:
to offset any capital expenditure straight away,consider asking the tenant to pay for it and deduct it from the rent you receive IE no expenditure,no income no tax,but for instance new double glazed window fitted
Click to expand...

Dunno how long such creativity would stand up in a Revenue Audit situation. There is also a risk of ending up with the worst of both worlds, eg if the tenant played silly buggers and complained to the PRTB about being forced to finance their landlord's capital improvements.
 
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