Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

landlord refurbishing loan and taxes

  • 08-08-2018 6:25pm
    #1
    bigtomw
    Registered Users, Registered Users 2 Posts: 93 ✭✭


    hi all I am looking at buying a rental property, the property itself is in need of complete refurbishment, now I am in a position to buy the property outright with cash, however I will have to take out a loan to refurbish it, can I write this loan off against future rental income, bareing in mind this will be a loan and not a mortgage, as I am aware you can only write off the mortgage interest against your tax,


Comments

  • #2
    Rows Grower
    Registered Users, Registered Users 2 Posts: 8,576 ✭✭✭Rows Grower


    I'd say that you will have to have receipts from a registered builder or registered tradesmen to prove that you spent the loan on the property.

    "Very soon we are going to Mars. You wouldn't have been going to Mars if my opponent won, that I can tell you. You wouldn't even be thinking about it."

    Donald Trump, March 13th 2018.



  • #3
    wiggle16
    Moderators, Society & Culture Moderators Posts: 3,022 Mod ✭✭✭✭wiggle16


    No, you can't offset the loan, unfortunately, as it would fall under pre-letting expenses, which are not allowable except under certain circumstances. The rules surrounding this are actually fairly complex and poorly worded, so I suggest you give this read before doing anything else:

    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-08-11.pdf

    The short answer, which is a big fat NO, is to be found here: https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-not-allowed.aspx

    Also strictly speaking a loan and interest are not allowable as an expense in and of themselves. You would have to add up the expenses incurred to arrive at a deductible figure, not go by the loan amount (seems like much of a muchness but that's the rule).

    So the short answer is no, you can't offset it.


Advertisement