If you rent out an investment property there is no relief available, the entire rental profit is subject to tax. You will however, be able to reduce the taxable profit by claiming rental expenses incurred such as mortgage interest, repairs, maintenance letting agents fee and property management fees.
There is a common misconception that when a property is let, it only needs to be declared on a tax return once it is profitable. This is not the case. Your investment property information needs to be returned regardless of whether it is profit or loss making.
By declaring this information now to Revenue you can easily carry the loss forward to offset against future Irish rental profit.
Mortgage interest incurred can be claimed as a deduction against your rental income however this relief is restricted to 75%. You cannot claim relief on any of the capital repayments you make against your mortgage.
If you don’t return a tax return and the correct loss information, Revenue may simply disallow this at a future date.
You will need to register with the Private Residential Tenancies Board, (PRTB). If you are not registered with the PRTB you will not be allowed to claim mortgage interest relief, so it is important you do this.
There is a common misconception that when a property is let, it only needs to be declared on a tax return once it is profitable. This is not the case. Your investment property information needs to be returned regardless of whether it is profit or loss making.
By declaring this information now to Revenue you can easily carry the loss forward to offset against future Irish rental profit.
Mortgage interest incurred can be claimed as a deduction against your rental income however this relief is restricted to 75%. You cannot claim relief on any of the capital repayments you make against your mortgage.
If you don’t return a tax return and the correct loss information, Revenue may simply disallow this at a future date.
You will need to register with the Private Residential Tenancies Board, (PRTB). If you are not registered with the PRTB you will not be allowed to claim mortgage interest relief, so it is important you do this.
RSS Feed
