Can I claim mortgage Interest payments against Rental Income

Varatha

Hi,

I am the first time landlord and have few questions on what expenses can be offset against the rental income? The property was purchased in 2016

1. Am I eligible to claim the mortgage Interest payment? If so what percentage?
   
   
2. Can I offset the property management fee paid for the rental apartment which is 2K every year?
   
   
3. I have posted the ad on November 2022 and probably would get a tenant from April 2021. So can i claim the losses occured between Nov2020-March2021? If so what kind of losses are eligible? i.e Electricity, any other?
   
   
4. Is PRTB registration mandatory?
   
   
5. I have not obtained a BER cert after the purchase, not sure if the cert was obtained during the sale by the seller, Is it mandatory to get BER cert to let the property for rental?
   
   
6. Can i file relavant taxes on my own or should I hire an Accountant?
   

Appreciate your help and Thanks in advance

Caranica

Judging by your questions you should definitely hire an accountant at least for the first year, that is deductible.

Also management fees. You can't deduct any pre-letting costs such as electricity

BER is compulsory for a rental so you need to get that, ditto RTB registration.

NIMAN

Check out


www.Irishlandlord.com

ted1

Varatha wrote: »

Hi,

I am the first time landlord and have few questions on what expenses can be offset against the rental income? The property was purchased in 2016

1. Am I eligible to claim the mortgage Interest payment? If so what percentage?
   
   
2. Can I offset the property management fee paid for the rental apartment which is 2K every year?
   
   
3. I have posted the ad on November 2022 and probably would get a tenant from April 2021. So can i claim the losses occured between Nov2020-March2021? If so what kind of losses are eligible? i.e Electricity, any other?
   
   
4. Is PRTB registration mandatory?
   
   
5. I have not obtained a BER cert after the purchase, not sure if the cert was obtained during the sale by the seller, Is it mandatory to get BER cert to let the property for rental?
   
   
6. Can i file relavant taxes on my own or should I hire an Accountant?
   

Appreciate your help and Thanks in advance

1. 100% but only if you are registered with PRTB

2. Yes

3. What losses, you have no tenant , so they are not registered with PRTB. So no interest. You can claim advertising.

4. Yes absolutely.

5. Yes BER cert is mandatory

6. Yes. But tbh you seem clueless so use an accountant for year 1. And then just do it yourself

riclad

You can claim for ads, paying an agent or an accountant,
capital expense, eg beds,fridge,cooker, table, chairs, carpets,
insurance,repairs
an accountant will charge 230euro approx for doing 1 years accounts.
100 per cent of the interest paid on the mortgage.
management fee 100 per cent
until you have a tenant you are not a landlord.
re capital expenses, you claim over 8 years,
eg fridge cost 400 claim 50 euro per year for 8 years.
its VERY important to hold onto all reciepts ,all documents,
bank statements ,letters from bank.
As soon as you have a tenant it is important to register the tenancy with the prtb.

you can do your accounts yourself or give all your docs letters to the accountant.




https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

hold on to all receipts for at least 2 years,
you have no loss,s as you are not a landlord until you have a tenant living there .
if you choose to have an apartment empty for 2 months thats up to you.

before you rent the unit,
walk around, take photos of rooms, walls, all the furniture,doors,
eg so you can prove the apartment was in good condition before the tenant moved in.
its up to the tenant to pay for sky, cable tv etc
take a photo of the gas meter ,esb meter dials , the day before the tenant moves in.
ask for a deposit.
eg at least 4 weeks rent before the tenant moves in.
give the tenant a rent book.
https://www.citizensinformation.ie/en/housing/renting_a_home/rent_books.html

An agent can manage the property, supervise any repairs, deal with the tenant etc

Varatha

Thank you all for your inputs and advice