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Can I deduct expenses occurred from repairing a house I rent out?

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  • 08-06-2021 5:58pm
    #1
    icarus_67
    Registered Users Posts: 60 ✭✭


    I'm renting out a house to a tenant and a significant amount of repair needs to be carried out but also I need to install new vents in every room etc so that the property will meet the standards of the new housing regulations. This will cost me a lot of money.

    I don't have much experience with doing this but I've been informed that I can deduct the expenses involved with these repairs etc but I'm wondering is there a limit to how much I can deduct from my taxes?


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    #2
    CIARAN_BOYLE
    Moderators, Sports Moderators Posts: 14,599 Mod ✭✭✭✭CIARAN_BOYLE


    You deduct from your rental income. Not from your taxes.

    Also talk to someone about the difference between renovation and repairs.

    Renovation and repairs are different.


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    #3
    icarus_67
    Registered Users Posts: 60 ✭✭icarus_67


    CIARAN_BOYLE wrote: »
    You deduct from your rental income. Not from your taxes.

    Also talk to someone about the difference between renovation and repairs.

    Renovation and repairs are different.
    So I'm not able to deduct anything from my taxes because of the repairs? I don't understand what you mean by rental income exactly? You're just talking about income I get from renting the property out?


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    #4
    mrslancaster
    Registered Users Posts: 1,764 ✭✭✭mrslancaster


    icarus_67 wrote: »
    So I'm not able to deduct anything from my taxes because of the repairs? I don't understand what you mean by rental income exactly? You're just talking about income I get from renting the property out?

    Basic example: Say your rental income for the year is 12000 (1000 per month) and you spend 500 on repairs, your Taxable income will be the reduced amount of 11500. So what you save will be the income tax on the 500 at whatever rate you pay

    You dont calculate the tax due and then deduct the 500 from the bottom line amount - No.


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    #5
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    If you have done so already please familiarise yourself with the information in the below link and engage an accountant.

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


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    #6
    icarus_67
    Registered Users Posts: 60 ✭✭icarus_67


    Yes, I've looked at that already. It doesn't specify anything regarding renovations though. Like the installation of vents in order to meet building regulations.


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    #7
    punisher5112
    Registered Users Posts: 24,647 ✭✭✭✭punisher5112


    icarus_67 wrote: »
    Yes, I've looked at that already. It doesn't specify anything regarding renovations though. Like the installation of vents in order to meet building regulations.

    That's on you... You need to have the building up to habitable status.


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    #8
    icarus_67
    Registered Users Posts: 60 ✭✭icarus_67


    punisher5112 wrote: »
    That's on you... You need to have the building up to habitable status.
    It's bit unfair that a landlord who's renting out to a HAP recipient is forced to install vents in every room because it is enforced by a HAP inspector but for some reason landlords who are renting out to people who are not on HAP don't have to worry about the ventilation regulations being enforced.

    There doesn't seem to be any inspectors who are not involved with HAP that are checking homes for vents in every room.


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    #9
    punisher5112
    Registered Users Posts: 24,647 ✭✭✭✭punisher5112


    icarus_67 wrote: »
    It's bit unfair that a landlord who's renting out to a HAP recipient is forced to install vents in every room because it is enforced by a HAP inspector but for some reason landlords who are renting out to people who are not on HAP don't have to worry about the ventilation regulations being enforced.

    There doesn't seem to be any inspectors who are not involved with HAP that are checking homes for vents in every room.

    Not true, I had it enforced in a rental and was compensated and was allowed to break the lease and leaf due to how bad the property was. In the summer it was grand, winter it was an ice hut, draughts, no adequate vents, damp, mould and mushrooms growing out of walls.


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    #10
    icarus_67
    Registered Users Posts: 60 ✭✭icarus_67


    punisher5112 wrote: »
    Not true, I had it enforced in a rental and was compensated and was allowed to break the lease and leaf due to how bad the property was. In the summer it was grand, winter it was an ice hut, draughts, no adequate vents, damp, mould and mushrooms growing out of walls.
    I assumed you had it enforced because you notified the relevant authority? It wasn't like an inspector called to your door on short notice to check the place.


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    #11
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,446 Mod ✭✭✭✭Gumbo


    icarus_67 wrote: »
    Yes, I've looked at that already. It doesn't specify anything regarding renovations though. Like the installation of vents in order to meet building regulations.
    icarus_67 wrote: »
    It's bit unfair that a landlord who's renting out to a HAP recipient is forced to install vents in every room because it is enforced by a HAP inspector but for some reason landlords who are renting out to people who are not on HAP don't have to worry about the ventilation regulations being enforced.

    There doesn't seem to be any inspectors who are not involved with HAP that are checking homes for vents in every room.

    As explained in your other thread. You are not installing the vents to meet Building Regulations. You are installing them to meet the current Minimum Rental Standards.


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    #12
    punisher5112
    Registered Users Posts: 24,647 ✭✭✭✭punisher5112


    icarus_67 wrote: »
    I assumed you had it enforced because you notified the relevant authority? It wasn't like an inspector called to your door on short notice to check the place.

    Correct.

    If one is a LL whether accidentally or purposely they are running a business and have to follow rules, laws and guidelines to meet the standards put by the authorities.

    They had to as so many were doing no to little basic essentials.

    Sure many a rental property put there that hasn't seen a bit of work or very little since the 70s or 80s.

    I've unfortunately been in some sheds, and I've worked in much worse... What was allowed go on for years was lunacy.


    It's up to tenants to look for the basics but in all honesty they shouldn't have to.

    One cottage was in, it was built in 81, it had same bathroom which was all green units, kitchen was completely worn out, warped presses, counters worn away, rot under sink etc etc.....

    When we got in we painted the whole house, the smell was unreal, the person that owned it was in a home years but the house was rented out for some time, we were desperate and the bank kicked us out of previous let as LL had numerous properties he wasn't paying the mortgage on for around 2 years so pocketed the money. That has sat 3 years empty, which we would have stayed and paid as we always did.

    The whole housing situation is a shambles.

    The recession hit, Nama took over, people like us, working paying huge rents should have had the chance to buy even of the home needed finishing etc, but no our gubernment had a great idea let vulture funds come in, buy up huge amounts of land for buttons and apartments for as little as €1k for a unit as they called them, then exempt them from paying tax like wtf......


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