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Tax relief on costs of renting out property

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  • 05-04-2016 12:11pm
    #1
    mcgrate
    Registered Users Posts: 131 ✭✭


    We are soon-to-be new landlords renting out a property for the first time and have a few questions.
    We need to re-paint, re-carpet, get some new beds etc.

    ARe these costs tax deductible at the end of the year when we have to submit our tax?

    We are hoping to start the tennancy at the start of May, if we bought the paint and carpet now (in April), will we be able to claim the tax back at the end of the year? Or do we need to wait until May?


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    #2
    whippet
    Registered Users Posts: 7,687 ✭✭✭whippet


    mcgrate wrote: »
    We are soon-to-be new landlords renting out a property for the first time and have a few questions.
    We need to re-paint, re-carpet, get some new beds etc.

    ARe these costs tax deductible at the end of the year when we have to submit our tax?

    We are hoping to start the tennancy at the start of May, if we bought the paint and carpet now (in April), will we be able to claim the tax back at the end of the year? Or do we need to wait until May?

    you don't claim the tax back, you do a tax return and you can make deductions based on allowed expense .. in essence lowering your tax liability.

    If you have no experience of doing this I would recommend using an accountant to file your tax return. It will cost a couple of hundred quid but can save you a lot of time flapping about on the ROS site not really understanding it and a competent accountant will ensure that you are claiming all the reliefs that you are entitled to.

    For 2016 you will need to file the return by the end of October 2017 (I might be mistaken as I thankfully am out of the game now)


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    #3
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Pre-letting renovations are not tax deductible. You can get tax relief on fixtures and fittings over 8 years (12% per year) and also on renovations between tenancies but not before you rent.


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    #4
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    http://www.revenue.ie/en/tax/it/leaflets/it70.html#section7
    Pre-letting expenses are not deductible, please see an accountant to make sure you know what you can and can't do.


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    #5
    mcgrate
    Registered Users Posts: 131 ✭✭mcgrate


    So i'm better off holding off until they move in to make the renovations? (carpet, paint etc)


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