Rental Property Income

Rental Property Expenses that can be claimed:

The following are examples of the type of expenses that may be claimed:

Repairs, insurance, maintenance, service charges, advertising for tenants, tax consultant fees and management of the rental property.

Interest accruing on money borrowed to purchase, improve or replace the rental property.

Goods provided and services rendered in connection with the letting of the rental property, i.e.. anything that you purchase for the property can be offset against your rental income.

Only expenses after the date of first letting are allowable, with the exception of the costs of negotiating the first letting – such as auctioneer’s, marketing, and solicitor’s cost.

Capital allowances at a rate of 12.5% annually can be claimed on costs incurred on items that are not revenue in nature, i.e.. that have a long term value, these costs will be written off over an 8 year period.

PRTB – this expenditure can be offset against your rental property income.

NPPR – this is not an allowable deduction against your rental property income.

Losses can be carried forward and offset against future rental profit or increase your rental loss in the following year.

We are happy to assist you in reviewing your rental expenses in more detail.

Types of Rental Property Income:

Letting a house, flat, apartment, office, building, land, a holiday home or Section 23 or other tax relief properties

Non Resident Landlords – Landlords with Irish properties who are not resident in the state.

Rent a Room Scheme 2024

The Rent a Room Scheme is a great way to earn money tax free, while at the same time, contributing to your mortgage repayments or allow you to live that little bit more comfortably!

Under the Rent a Room Scheme, you can earn up to €14,000 a year for 2024 tax free from renting out one or more rooms in your house.

Annual exemption limit for Rent a Room Relief:

  • 2023 €14,000

  • 2022 €14,000

  • 2021 €14,000

  • 2020 €14,000

  • 2019 €14,000

  • 2018 €14,000

5 Important Points to remember when completing a Rental Property Tax return

(1) Valid PRTB Registration (Tenancy Registration) Mortgage interest payments can only be claimed as an expense on a rental property income tax return of you have a valid PRTB registration in place.

(2) Mortgage Interest Your mortgage provider should issue you with a mortgage interest certificate at the end of each tax year which will confirm the total amount of interest charged in the year.

(3) Repairs & Maintenance Cost v Purchases of Furniture & Fittings It is important to classify these expenses correctly as different tax treatments apply to each type. Rental Property expenses which can be claimed, Repairs & Maintenance should relate to the cost of general repairs and ongoing upkeep of the property, examples below:

  • Decorators

  • Plumbers

  • Replacement parts for existing fixtures and fittings already in the rental property.

The purchase of new furniture and other fixtures and fittings cannot be claimed under Repairs & Maintenance, you must claim tax relief on these expenses via a capital allowances claim, examples below:

  • Beds

  • Tables

  • Washing Machines

Capital Allowance tax relief is a particular way of claiming tax deductions on the cost of furniture and other equipment and fittings. Instead of receiving the full tax deduction of these in the year in which you purchased them, you are instead entitled to 12.5% of the costs of these each tear fir 8 years.

(4) Management Fees, Insurance & Other Time Apportioned Expenses Certain rental property income return expenses must be time apportioned before claiming on your tax return. If you pay management fees or insurance on your property and the period covered by these fees do not coincide with the tax year, you must time apportion the fees.

(5) Starting or Finishing as a Rental Property during the Year Certain rental property income tax

expenses should be time apportioned where the property is let for the first or last time during the year.

Contact us TODAY – We can prepare and submit all Rental Property Accounts and Tax Returns.

Frequently Asked Questions

Rental Property Income FAQ

Can you help me file tax returns on my rental property income?

Yes, this is one of our specialities. Our team of Portlaoise estate agents offers help, advice, and recommendations on filing tax returns for all types of rental properties.

Can I rent a room without paying tax?

Yes. There are a number of schemes in place that allow landlords to rent rooms without having to pay tax on them, including the rent a room scheme, which provides rent-free income up to a certain point.

Get in touch with our team of estate agents for more

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