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Tax relief on rental property

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  • 23-12-2005 3:59pm
    #1
    jimbobwalton
    Registered Users Posts: 86 ✭✭


    I let out a house in April of this year...I now I can claim the interest on the mortgage...but can I only claim it from april onwards or can I claim it for the whole year. I was looking for a tennant from Jan ..but noone until April thus hte question


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    #2
    irishunion.com
    Closed Accounts Posts: 34 ✭irishunion.com


    jimbobwalton wrote:
    I let out a house in April of this year...I now I can claim the interest on the mortgage...but can I only claim it from april onwards or can I claim it for the whole year. I was looking for a tennant from Jan ..but noone until April thus hte question


    Call this no: 0872654241 to contact boyle estates, they can help you find a tenant.


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    #3
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    Were you resident in the property? Had you moved elsewhere for that period?


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    #4
    jimbobwalton
    Registered Users Posts: 86 ✭✭jimbobwalton


    Irish ...I have a tenant so thanks for the number....

    Victor
    Nobody was resident in the house ...this tenant is the first tennant ever. It is a brand new house...it will be a legitimate rental...I have my own family home also


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    #5
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    It sounds like you can write off all the interest against income tax.

    But do talk to a professional (accountant?) to make sure you work the angles right.


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    #6
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    jimbobwalton wrote:
    I let out a house in April of this year...I now I can claim the interest on the mortgage...but can I only claim it from april onwards or can I claim it for the whole year. I was looking for a tennant from Jan ..but noone until April thus hte question
    Hi Jimbob - Have you checked out the possible stamp duty & CGT implications of your decision to rent? See this thread on Askaboutmoney.com for more details.


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    #7
    jimbobwalton
    Registered Users Posts: 86 ✭✭jimbobwalton


    Hi Rainy..yes I have ...stamp duty has been paid...the house was bought as an investment property ...


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    #8
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    Oh, the date you use for writing of the interest is likely to be used as the date for calculating CGT when you sell.

    Question, if you bought the property in 2004, you should be also able to write of that interest.


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    #9
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    If the sole purpose of buying the property was renting then yes you can.

    If however you are talking about renting a room in your own house then I don't think they will allow you to write off the rest of the interest against the rental income.


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    #10
    jimbobwalton
    Registered Users Posts: 86 ✭✭jimbobwalton


    yes the house was bought in 2004 and we had to pay stage payment!!...we did not get a tennant until march 05... so is a tax loss also allowable for 2004.

    How much (ballpark) should a tax professional cost me to do the books....!!!


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    #11
    jayok
    Registered Users Posts: 1,906 ✭✭✭jayok


    Ooohh... I don't believe you can write off interest until your first rental. Interest is see as a letting expense.

    See here:

    http://www.revenue.ie/leaflets/it70.htm

    What expenses cannot be claimed for?

    * Pre-letting expenses, i.e., expenses incurred prior to the date on which the premises was first let apart from auctioneer’s letting fees, advertising fees and legal expenses incurred on first lettings.


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