(Pre-) Letting Expenses

Connacht

In principle, I understand about allowable expenses (including pre-letting and vacant residential premises) that a landlord can offset against rental income.

However, 2 questions please.

First, what if your allowable pre-letting expenses are greater than your first tax year income? Is the excess simply 'lost', or can it be carried over and claimed against income in calendar year two?

Example : A house is only first let out on Nov 1 and earns 2 x 2,000 = €4,000 rent for tax year 1, but allowable pre-letting expenses in 12 months to 31 Oct amount to €6,000.

Second, one allowable "pre-letting" expense is auctioneer costs, eg to find you a tenant. But I don't understand that, since her invoice is obviously going to post-date rental commencement, because she can only invoice once the tenant is in place. Can that invoice be claimed against income in calendar year 2 even though incurred during year 1?

Thanks so much for your help.

antoinolachtnai

My understanding is that you can carry the loss forward. However you should speak to an accountant to make sure you present this properly in your tax submission.