Is buying a property tax deductable?

summereire

I'm really puzzled on this one, and finding it hard to find resources on this on Revenue.ie or anywhere else online:

Is buying a property tax deductible?

I know interest is, on a mortgage, but what about the purchase price of the property itself? Can this be claimed either in one go or over a period of years like when you buy equipment?

Obviously I'll be getting an accountant on board before actually doing anything, I'm more just looking for general resources at the moment to decide if I can buy rather than lease and am surprised by the lack of them so far.

Any help, or pointers towards resources on this, are very much appreciated.

summereire

Yes, 100%. How it the purchase of a commercial property treated for tax purposes?

MBateson

A property you buy to operate out of is not tax deductible for income/corporation tax.

If you sell it on and make a gain, then it allowable as an 'expense' for Capital Gains Tax.

There used to be capital allowances for certain industrial buildings but I'm pretty sure they've done away with them. Am open to correction.

summereire

Thank you, I'm used to the US system which is a bit different.

So if I understand you correctly:

- I buy a commercial property for €250k
- I get to claim nothing at all for the life of the property (other than interest on mortgage payments)
- When I sell it, the purchase price has €250k subtracted from it, and I pay tax on the balance

So therefore leasing could actually work out considerably cheaper in the immediate term, even when the cost of buying a comparable property may be cheaper?

Is a property you buy to lease to others, rather than occupy yourself, any different?

barneystinson

http://www.boards.ie/vbulletin/showthread.php?t=2056143364

Mr. Incognito

Google Industrial Buildings allowance

But in short.. No.