Buy to Let 1st Yr Property Expenses - can this be spread >1yr?

Jesper · 10-03-2016 9:24am #1

I bought a Buy to Let in Dec'14, and a sister stayed there in for 3 months in which I renovated the place. Following that I registered it with PTRB and a family moved in. They are still in place and I hope they will be for some time.

I'm preparing my Tax return for last year. Obviously the new house (second hand) needed furnishing/renovations/white appliances/Legal/Stamp etc. expenses which all build up to about €18,000.

The rental income for the year was about €6,500. Is there any way to extend the 1st yr costs over more than the first year tax returns?

Michael D Not Higgins · 10-03-2016 9:33am

You can't use expenses from before you rented in your tax return. All your renovation before renting is not considered renting expenses.

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section7

Baby01032012 · 10-03-2016 9:46am

However the expenses you mentioned are capital items not expenses so they can be written off against income over 8 years - 12.5% per year.

As Michael D said to put through as expenses when they were incurred prior to first letting is wrong - unless your sister was a tenant ie paid rent and was registered with PRTB

Buy to Let 1st Yr Property Expenses - can this be spread >1yr?

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