Section 23

M

Maximus152

Registered User
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Hi all,
I have a Section 23 house (small modest home). I am renting it. Every time I get a new tenant I have to do an almost complete revamp and clean up, and its starting to add up. I plan to live there some day, but work in the Dublin area so I want to take care of it. My question is this, can I calim any Tax relief or anything back for the running costs. I ma paying for a gardener, I pay for new furniture (as I could not claim of last tenant as they would not pay up), cleaning house, painting. I just want to know even though its section 23 can I claim back any costs, if so how and where. Please do not tell me yes you can at the end of year as that means nothing, if any one has some knowledge I would be grateful as its seems to be a grate unknown even in the Tax office, I just got a "well not sure.....silence....more silence....." :confused: So any direction appreciated.

Maximus
 
Yes you can claim for all of the mess, just because it is section does not mean that you have not got legit claims.
 
Hi Bessa, but how do I. No one seems to be able to tell me. I know its at the end of the year, but what form, or to who....

Thank you
Maximus
 
My accountant looks after it all, but you can take all your receipts to your local tax office prior to the 31st of October 2009.
 
Bessa, okay. You say take receipts to your local tax office, I am wondering what you mean. Do I just arrive at some que and present a bunch of reciepts :) this is all new to me so excuse the questions. Thanks again for help. Maybe an example would be easier.

Maximus
 
On a single sheet of paper, show how much rent you received in 2008.

On the same sheet, list what you had to spend (painting, garden maintenance, replacement of contents broken/missing, management or service charges that you have to pay, and so on) and total them.

Subtract the spending from the rent received, and that is your profit rent.

Include that sheet with your annual tax return form (form 11 or 12).

Have receipts available for the tax inspector, but don't send them in unless you are asked for them.
 
PadraigB, thank you for the advice. One problem, its section23, I do not pay tax on the rent (rent is only 380 pm) its the benifet of section23, but that is negligable to me as it never covers my running costs or when there is no one there. Im not looking for favours or extra cash, only what I am intitled to, seems I get left with all these reapirs and running costs, requests for this that the other. I had to replace a whole bed because the teneant did not like the feel of it, was perfect! also had to replace an entire set of kitchen ware as they did not think what was there was up to date and clean! I only both it 6 months ago.


Maximus
 
Section 23 is of no real benefit to you unless you have rental income profit. In most cases people have other (non Sec 23) properties which are profitmaking and the use the Section 23 to offset the tax on the collective rental income.

You can claim rental losses but you will not get a refund. The loss will be carried forward on paper so that in future years it can be offset if for eg : you acquire another rental property that is profitmaking.

Section 23 can only be used to offset tax from rental income and not any other tax you are liable for.

Hope this clarifies it a bit for you.
PS. as for replacing kitchenware etc... well that I am afraid is part of the joys of being a landlord and comes with the job description.
 
Armada, Hi I understand all of that. And the joys of kitchen ware. Its just this year the tenants are relentless. They have had plumbers out, electricains out and all for obscure reasons (i.e a light bulb not working, heating not working after they continually run it dry) anyhow I have no argument I just wondered as I said in 1st post "Can I with a Section 23 home (where I pay no tax on rent as this is my benefit) claim anything back fro running costs. Again what do you mean cxarried forward on paper, that means very little to me! Can some one just give me a simple answer, like yes you can, simply fill out a form (example) and send to some department at end of year! or no you can not. If ppl are not sure then its pointless as I am a bright boy and as you can see no one seems to have a clear answer.

Maximus
 
Hi Maximus,

Can some one just give me a simple answer, like yes you can, simply fill out a form (example) and send to some department at end of year! or no you can not.
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No you can't claim anything back at the end of the year. You don't make enough rental profit to make use of your Section 23 tax status, why should you be entitled to anything back?

Again what do you mean cxarried forward on paper,
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You should still do a rental return each year and show the loss you are making, thus one year in the distant distant future when you make a profit you might be able to write down the value of the profit against previous losses thus paying less tax. To do this go on to the Revenue website and download a Form 11 or Form 12 depending on you PAYE status

If ppl are not sure then its pointless as I am a bright boy and as you can see no one seems to have a clear answer.
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Loads of people gave you a clear answer, just not the answer you wanted.

If you bought a Section 23 property without other Rental Income, then you are probably after overpaying massively, it is of absolutely no benefit to you as you would probably pay no tax anyway judging by the amount of rent you are getting.

Peadar
 
Peadar, okay your point "No you can't claim anything back at the end of the year. You don't make enough rental profit to make use of your Section 23 tax status, why should you be entitled to anything back?" well that what I am trying to find out. Well if I am not entitled to it I have no issue, but if I am then I would not like to be fool and not find out, forgive me for asking and trying to query something! I should be Scalded I know.
"Loads of people gave you a clear answer, just not the answer you wanted" yikes I detect negative vibes :) ,.... I just wanted a yes or no answer because I was informed by "tenant" as it happens that I could! And it was not clear, as they are all pretty much different answers, I respect their answers, its just to me was still not clear and some had told me what I already knew, not their fault as not a lot of ppl do!
And no I am not over paying as I bought back of the plans, and did not know or care it was section23 that was just a bonus. The place actually pays for itself thankfully.
So that's it then, the answer I needed by the looks of it, that I can not claim and if maybe in the distant future I make a profit I can use some receipts from a previous year to claim against it. Simple! Thanks.
 
As I stated clearly " I just want to know even though its section 23 can I claim back any costs, if so how and where" ..... thank you for answers. No more help on this one required by me.

Rgds
Maximus
 
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