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Rental property/renovations/tax write off

  • 14-03-2021 4:18pm
    #1
    DonnieCorko
    Registered Users, Registered Users 2 Posts: 256 ✭✭


    Hi there,

    We have a rental property that we airbnb. Repairs are needed on the house (new door, some plastering, anti mould work, perhaps new roof, painting). I am wondering is this eligible for tax write offs. If so, can anyone give me some further information on it? Also, are there any grants available for insulation etc on second/rental properties.

    Thanks


Comments

  • #2
    Baby01032012
    Registered Users, Registered Users 2 Posts: 1,622 ✭✭✭Baby01032012


    DonnieCorko wrote: »
    Hi there,

    We have a rental property that we airbnb. Repairs are needed on the house (new door, some plastering, anti mould work, perhaps new roof, painting). I am wondering is this eligible for tax write offs. If so, can anyone give me some further information on it? Also, are there any grants available for insulation etc on second/rental properties.

    Thanks

    Do you have a rental property or a property you Airbnb?

    Both are very different for tax purposes. If you’re in the either business it’s worths reading up on revenue website on rental income allowable expenses etc. Also read the sei website on grants available to home owners.

    To your question, for a rental property capital expenses as you outlined and expenses in between lettings are not allowable against income. Capital can be for CGT purposes. If you’re Airbnb then it doesn’t come under case V rental income it’s classed as trading income and therefore those expenses in between Airbnb lettings would be allowed.

    Please familiarise yourself with what trade you are involved in!


  • #3
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,430 CMod ✭✭✭✭Pawwed Rig


    Good advice in the previous post however I would say that some if the items would be revenue costs rather than capital.


  • #4
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Look at Schedule D Case IV income, you cannot claim repairs, insurance, etc.


  • #5
    Baby01032012
    Registered Users, Registered Users 2 Posts: 1,622 ✭✭✭Baby01032012


    davindub wrote: »
    Look at Schedule D Case IV income, you cannot claim repairs, insurance, etc.

    Case V and those expenses aren’t allowable between lettings neither would the capital items of new door or new roof but could be added to cost of the property to reduce capital gains in a future sale.


  • #6
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Baby01032012 wrote: »
    Case V and those expenses aren’t allowable between lettings neither would the capital items of new door or new roof but could be added to cost of the property to reduce capital gains in a future sale.

    It's not case V, if you have a look at the revenue manual it will say something like renting without a landlord tenant relationship is case IV.

    Case V allows for repairs between lettings.

    New door/ roof, it is not very likely to be accepted as enhancement expenditure unless the building is dilapidated.


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