Allowable expenses on Rental Income

Fondu

Hi All,

I read the guide to rental income and am unsure on some expenses i have incurred with my 4 rental properties. The expenses have to solely be for the property in question and that you can claim for your own labour.

I was wondering are any of the following allowable as expenses.
I read here that they can be allowable within reason:
http://www.paylesstax.ie/how-to-calculate-your-rental-income/

Cost of petrol when inspecting the property. Possibly moving to dublin so would then need to drive to different county to inspect houses.

Phone bill.

Banking fees for account where money is received.

In effect, im not charging for my own labour or time, just the items i have to pay for when managing the property. Likewise if an item of a door broke. I bought the part and fixed it myself, i could claim the door part back as an expense.

Mr. Incognito

Fondu wrote: »

Hi All,

I read the guide to rental income and am unsure on some expenses i have incurred with my 4 rental properties. The expenses have to solely be for the property in question and that you can claim for your own labour.

I was wondering are any of the following allowable as expenses.
I read here that they can be allowable within reason:
http://www.paylesstax.ie/how-to-calculate-your-rental-income/

Cost of petrol when inspecting the property. Possibly moving to dublin so would then need to drive to different county to inspect houses.

No

Phone bill.

No

Banking fees for account where money is received.

Not unless the account is used solely for the rental business so no.

In effect, im not charging for my own labour or time, just the items i have to pay for when managing the property. Likewise if an item of a door broke. I bought the part and fixed it myself, i could claim the door part back as an expense.

Landlords cannot deduct for their own labour or time.

Fondu

How is that charging for my own labour. I am not charging an hourly rate for doing a job. I don't get why I can claim theses expenses as they are legitimate expenses I incur as a result of the property management. If I handed them over to a management agent. They would expense them no plus they would charge for their own effort in doing a job.

Valetta

Revenue are reasonable.

I have seen deductions made for travel to a property, but possibly up to twice a year and no more. That is a reasonable expense incurred in the business.

Also, any repairs carried out: materials can be deducted, once receipts are kept.

If there are phone calls made in connection with the property, then a reasonable estimate of cost will be allowed, again once it is documented and can be backed up.

carveone

Valetta wrote: »

Revenue are reasonable.

Yes, they are. Even with PAYE you can do things like claim for materials associated with your job - for example trade magazines or computer books or professional subscriptions. Where they get less reasonable is when you start taking the mick so to speak. If you can't back up the claim then you'll have trouble.

As a side question - if you own one rental property, the rental income falls under form 11. Do you now have to file via ROS? They changed something at the start of the year that indicates you might... My Da's in his 80s and if he has to file via ROS that means I'll have to do it :P