Tax on rental property

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Skyler White

Registered User
Messages
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Hi, are there any further deductions on ROS I could claim for in relation to a rental property. I've claimed for maintenance fees and mortgage interest. I've also entered medical expenses in excess of €10k. Amount due is still quite high, am I missing anything. There were no repairs done this year.

We are hoping to sell the property next year as the outgoings due to mortgage increases are unsustainable.
 
Skyler White said:
Hi, are there any further deductions on ROS I could claim for in relation to a rental property. I've claimed for maintenance fees and mortgage interest. I've also entered medical expenses in excess of €10k. Amount due is still quite high, am I missing anything. There were no repairs done this year
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How can we tell in fairness, without knowing the details involved?
 
Premos said:
Any capital allowance on spending over the past 8 years (washing machine, oven, sofa...)
Insurance?
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Thank you Premos for your helpful response.

There are no capital allowance on spending over the past 8 years. To be honest, we have the rent at such a low rate, we rarely hear from the tenants, I'm sure they are happy enough and they pay the rent on time. I will feel bad when we give them the notice to quit but due to my ongoing health difficulties, the risk is too high in the current environment.
 
Skyler White said:
Hi, are there any further deductions on ROS I could claim for in relation to a rental property. I've claimed for maintenance fees and mortgage interest. I've also entered medical expenses in excess of €10k. Amount due is still quite high, am I missing anything. There were no repairs done this year.

We are hoping to sell the property next year as the outgoings due to mortgage increases are unsustainable.
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You can claim for the house insurance, accountancy fees if any. You mentioned interest and maintenance fees already and another poster mentioned capital allowances. That's pretty much it, welcome to being a landlord with high taxes! The exact reason most are leaving the market!
 
imalwayshappy said:
You can claim for the house insurance, accountancy fees if any. You mentioned interest and maintenance fees already and another poster mentioned capital allowances. That's pretty much it, welcome to being a landlord with high taxes! The exact reason most are leaving the market!
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Yes, and be happy youe nice profit.
 
so none of the furniture in the house is yours? none of the white goods are yours? you didn't put down floors, curtains, blinds in last 8 years?
this all have a deduction they did not have to be bought new in 2022.
 
Skyler White said:
Sorry, I'm not sure what other details are necessary. We are both PAYE.
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It's impossible to diagnose without looking at the figures and seeing how you've calculated them. If there is someone you trust who is in similar circumstances in relation to a property of their own, perhaps you could agree to share notes with a view to spotting any errors or omissions in each other's work?
 
OGC222 said:
so none of the furniture in the house is yours? none of the white goods are yours? you didn't put down floors, curtains, blinds in last 8 years?
this all have a deduction they did not have to be bought new in 2022.
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The furniture is ours and the white goods, however they were all there from the day we first let the property. And no, we haven't put down floors, curtains or blinds either.
 
Skyler White said:
We've made no profit, hence the reason why I have posted on here!
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If you have made no rental profits, then your tax bill on your rental property will be zero.

Therefore, why are you asking to look for further deductions?

No rental profits means that the deductions (mortgage interest, maintenance expenses) already must exceed the gross rental income.

I presume this is because the rent is below the market rate, and/or the interest bill has increased a lot.
 
Protocol said:
If you have made no rental profits, then your tax bill on your rental property will be zero.

Therefore, why are you asking to look for further deductions?

No rental profits means that the deductions (mortgage interest, maintenance expenses) already must exceed the gross rental income.

I presume this is because the rent is below the market rate, and/or the interest bill has increased a lot.
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Most people count cashflow as profits. It's quite easy for landlords to simultaneously have a substantial tax liability and a significant cashflow deficit, particularly where there are high borrowings.
 
Yes, I suspected that.

Yes, cashflow deficits are common, but of course debt is falling, and so net savings are rising, as the asset is being accumulated.


Many Irish people count the entire mortgage payment as a cost, and then expect to make a profit, even after that repayment.

They expect the tenant to pay both the cost of occupation, and the cost of ownership.
 
Protocol said:
They expect the tenant to pay both the cost of occupation, and the cost of ownership.
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Well ultimately if they don't, the entire proposition falls asunder. No business will survive unless its operations generate sufficient profitability to make the incentive worthwhile, and sufficient ongoing cashflow to keep it afloat throughout.
 
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