Rental Income - Allowable deductions

March 13, 2022

There are a number of expenses that a landlord can claim against rental income. We take a look at what can and can't be deducted from this income source.

The good news, You can deduct:

         
  • Utility bills such as rates, light and heat, phone, refuse collection etc.
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  • Rent that you pay for the property.
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  • Repairs and maintenance i.e. general upkeep on the property.
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  • Insurance and management expenses.
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  • Pre-letting expenditure in relation to a vacant property (first let before 31/12/2021). The cap on this expenditure = €5,000.  
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  • The cost of registering with the Tenancies Board.
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  • Loan interest (money borrowed to buy, improve or repair the property).
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  • Certain mortgage protection policies.
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  • Pre-letting expenses such as advertising and legal fees.
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  • You are entitled to 12.5%  per annum over 8 years of the cost of qualifying assets that you purchase for your property e.g. fixtures and fittings.
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The not so good news, You can’t deduct:

         
  • Capital/enhancement expenditure e.g. building an extension.
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  • Where the property is not registered with the Tenancies Board you are not entitled to deduct loan interest.
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  • NPPR and LPT charges.
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  • Putting a value on your own time e.g. for upkeep of the property.
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  • Pre-letting expenses (other than exceptions noted above).
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