Landlords in receipt of rental income from residential or commercial property are obliged to submit tax returns annually whether the property is profit making or not.
A separate calculation must be made for each letting.
What Expenditure Can Be Deducted?
The following are examples of expenditure you may deduct when calculating your rental income or losses., rents payable by the landlord in respect of the property, e.g. ground rent,
- rates payable by you to a local authority in respect of the property,
- the cost of any service or goods you provide and for which you do not receive separate payment from your tenant, e.g. gas, electricity, central heating, telephone rental, cable television, water and refuse collection,
- maintenance of the property, e.g. cleaning and general servicing, exterior and interior painting and decorating,
- insurance of the premises against fire, public liability insurance, etc.,
- management, e.g. the actual cost of collection of rents and advertising for tenants, legal fees to cover the drawing up of leases or the issue of solicitors letters to tenants who default on payment of rent. Accountancy fees incurred for the purposes of preparing a rental account may also be deducted.
- repairs, Examples of common repairs which are normally deductible in computing rental income include: 1.damp and rot treatment,2.mending broken windows, doors, furniture and machines, 3.replacing roof slates.However, you may not claim a deduction for your own labour.
- Interest on money borrowed to purchase, improve or repair the let property. (restrictions apply)
- certain mortgage protection policy premiums, expenditure incurred between lettings in certain circumstances,
- Allowances for capital expenditure may also be available.
- Interest On Borrowings – Subject to some exceptions, interest on money borrowed to purchase, improve or repair let property is deductible in computing your rental income for tax purposes.
The deduction for interest accruing on loans used to purchase, improve or repair rented residential property is restricted to 75%.
For the year 2006 onwards mortgage interest is not deductible where the person making the claim has not complied with the registration requirements of the Private Residential Tenancies Board in relation to any tenancies in the particular premises
Rent a room relief – The Rent a Room Scheme is a great way to earn money tax free,
If you let a room (or rooms) in your sole or main residence as residential accommodation, including for example, rooms let to students for the academic year, and the gross amounts receivable (“relevant sums”), including monies for food, laundry or similar goods and services, does not exceed the exemption limit for the year of assessment in question (€12,000 per annum from 1 January 2015), the profits or losses on the relevant sums are treated as nil for income tax purposes. Thus, profits are disregarded for income tax, PRSI and USC purposes and losses cannot be offset against rental profits from other lettings.
Under the Rent a Room Scheme, you can earn up to €12,000 a year tax free from renting out one or more rooms in your house.
You also do not have to register the tenancy with the PRTB (Private Residential Tenancies Board) or pay Property Tax. While the rent is tax free, you do have to declare it through a Tax Return.
Foreign Property – As Irish people have acquired properties across the globe, they have received rents from these properties. In Ireland, you are still subject to declare this rental income on an annual basis. The rent received from this type of property is subject to income tax with deductions for costs incurred during the year. If you have paid local tax relating for this property in that country, you can claim a double tax relief which will reduce your tax bill in Ireland.
Personal Income Tax Return – €250 including vat if you fall within the following criteria
- Are not self-employed
- Have only one employer
- Have no more than 1 investment property
- Have received no capital gains from disposal of assets in this tax year
You will be dedicated Tax Advisor will manage your full tax return process, including:
- Ensure that all Tax Credits and Deduction options are claimed.
- Generate a completed Form11 or Form 12 Income Tax Return, which will be reviewed by you the client.
- File your tax return on your instruction.
- We submit on your behalf your income tax and preliminary tax payments