Does this sound right? Landlords tax implications

thenobody

Hi,

I have just become a landlord as I have moved out of our apartment.
Lease was signed today.

I am looking into the tax implications and TRS stuff.

Rent is €1050
Mortgage (incl TRS is) €932 (excluding TRS would be i assume €1042)
So if i take into account Mortgage Protection, Management Fees I am down about €48 every month.
If i get the TRS removed i will be down about €158 per month

So in calculating my tax return for next year (i have worked out the mortgage interest for the rest of the year) - and assume everything is only applicable from now to end of year, 6 months.
I seem to come up with having to pay tax of around €290.

But should i have to pay any even with having such a lose every month from the low rent?
Would you expect that i could still have to pay so much tax in a year?

This is taking into account mortgage interest, letting agent fees, PTRB fee, new bed (at 12.5%/2), management fees, contents insurance, other furniture depreciation and mortgage protection payments.

I would greatly appreciate some advice on this and if I can indeed claim expenses for all these things.

D3PO

you can write off your interest off against tax and the letting agent fees and prtb fee, as far as Im aware so you cant deduct management fees,

you definatly cant write off loss of TRS, mortgage protection, furnature depreciation (good try though)
you can write off any work done on the accomadation or items bought for it so the bed is ok to deduct

to be honest your best bet is to get an accountant to advise you on exactly what you can and what you cannot knock off your tax bill.

thenobody

Are you sure you can't deduct management fees?
That would be ridiculous.
You can knock off services costs and insurance costs. They are a major part of apartment management fees. There can't be something for houses only and not for apartments surely.

And are you sure about the furniture? I am proving them with lots of furniture i had that is a couple of years old. Can I not expense wear and tear depreciation on them for the next six years?
And can I also do this for carpets already installed?

Seems it will take a lot for landlords to break even, rents are just far too low at the moment. It's certainly not an investment for me. Just that I have to move out and back with parents.

athtrasna

You can write off management fees but as the previous poster suggests, an accountant is the best investment you'll make and also a deductible one! Make sure you register the property with the PRTB.

The_Conductor

Normally you have buildings insurance. Furniture and fittings are depreciated on a flatline basis 20% per annum, from date of purchase. Most landlords don't have contents insurance.

Note: if you are no longer an owner occupier- you have to notify the revenue commissioners and your mortgage lender. Investors traditionally pay a slightly higher mortgage interest rate than do owner occupiers, and your TRS allowances are different too. Its also possible that there could be stamp duty implications- depending on when you purchased the property initially.......

S.

D3PO

thenobody wrote: »

Are you sure you can't deduct management fees?
.

Im not sure on that one I did say I think on that point Definatly you cannot write off deprection of your furniture if ther eis wear and tear and you need to replace something then you can write off the cost of the repalcement or repair.

e.g if the carpets needed cleaning then you could write that off, if the carpets needed to be repalced you could write that off, but you cant write off the carpet value over a 6 year period.

anyway you really are best getting an accountant to advise you which is something you can write off against tax

John Mason

LOL - this is just like a tax question in summer exams

management fees - yes

furniture - no

you can deduct your wear and tear at 12.5% but capital items cannot not be deducted but you deduct repairs

there are also capital allowanances and capital losses to consider

get an accountant.