rental income

moonfish

Hi

Im presently filling out the my form 11 for rental income on house i've rented out can some please tell me how the capital allowance section works this is the first time ive tried to fill it out myself

barneystinson

moonfish wrote: »

Hi

Im presently filling out the my form 11 for rental income on house i've rented out can some please tell me how the capital allowance section works this is the first time ive tried to fill it out myself

Read http://www.revenue.ie/en/tax/it/leaflets/it70.html

Or if you go to the enormous effort of a google search for "Rental Property Capital Allowances" your search should yield the following as your top hits: http://www.google.ie/url?sa=t&rct=j&q=rental%20property%20capital%20allowances&source=web&cd=1&sqi=2&ved=0CC8QFjAA&url=http%3A%2F%2Fwww.irishlandlord.com%2Findex.aspx%3Fpage%3Dinfocentre_article_view%26id%3D8&ei=d5bBTr6mNMSJhQfs7fW8BA&usg=AFQjCNFgPQ_7kkOzcIdiW7Ss9kRtcrQBHQ&cad=rja and http://www.google.ie/url?sa=t&rct=j&q=rental%20property%20capital%20allowances&source=web&cd=2&sqi=2&ved=0CDYQFjAB&url=http%3A%2F%2Fwww.mcgibney.com%2Ftax_on_rental_income.htm&ei=d5bBTr6mNMSJhQfs7fW8BA&usg=AFQjCNGf0gWQrThx0pLdHbN6X0Tk89o6QA&cad=rja, both of which are quite clear and concise.

moonfish

well my big question is if my interest payments are greater than my rent can i omit my capital allowance for another year or do i have to account for it for the first 8 years

barneystinson

moonfish wrote: »

well my big question is if my interest payments are greater than my rent can i omit my capital allowance for another year or do i have to account for it for the first 8 years

Well there's one other important question which is why are you filling out a Form 11? If you are a PAYE taxpayer with only one rental property and it's returning a loss, then you should be filing a form 12...

As for the capital allowances, you still have to calculate them each year, you'll see there's panels to say:
1. how much unused capital allowances you are carrying forward,
2. How much capital allowances you've calculated for the year,
3. How much capital allowances you're using against rental income (in your case zero),
4. How much capital allowances you are carrying forward unused to the next year (which will be 1+2-3).

Citizenpain

and remember that only 75% of interest is allowed ; and then only if prtb registered