That time of year is fast approaching again and we will all need to file our tax returns. As a landlord there are many tax deductible expenses such as management fees and mortgage interest payments. Let’s take a look at the top ten tax deductible expenses for landlords in Ireland.
Registration Fees
As of this year, you must be a registered member of the Private Residents Tenants Board (PRTB) to legally let a private property in Ireland. You can register as a landlord at the following link: https://www.rtb.ie/portal At present, it’s €40 per tenancy and you have to register within a month of the tenancy’s start date. If you’re late, there’s a fee of €10. The amount you pay to register multiple tenancies in a single building per year is typically capped at €170. You can see a full breakdown of fees at the following link: https://www.rtb.ie/register-a-tenancy/registration-fees
You can claim back the full amount for both the initial fee and the sum you paid per tenant, provided you haven’t incurred any penalties for late registration.
Mortgage Interest
Landlords can claim 100% of their mortgage interest payments as a deduction against any rental income. In order to qualify for this deduction you must be a registered landlord with the PRTB (see point 1)
Writing off Assets
You can write off the cost of various items that may fall under the wear & tear category. So think new sofas, beds, washing machines etc. Note that Wear and Tear covers all expenditure on brand new furnishings (provided you keep all your receipts), but Repairs & Maintenance has to be essential and non-profitable to qualify as a deductible.
Maintenance
These expenses essentially cover the cost of maintaining your property to a livable standard for your tenants. Repairs & Maintenance covers the cost of fixing broken windows/locks, servicing boilers or other plumbing issues etc. Remember though, you can claim maintenance if you hire someone to paint your property or fix any other issues, but can’t claim for your own labour if you do it yourself.
Mortgage Protection Policies
For landlords who have taken out any mortgage protection insurance policies, you are allowed to use this as a deduction against your rental Income.
Rental Income
If you are a landlord who may have a combined rent/mortgage with a local authority and are subsequently renting out property the Rent portion is an allowable deduction. Your accountant will be able to provide more details on this point.
Management Fees
Property management fees are tax deductible so if you are using a property management team to manage your properties and collect rent on your behalf then make sure to let your accountant know.
Costs
Unfortunately, often landlords are left with unpaid utilities bills or other charges the tenant has incurred while in your property. But not all is lost as you can claim the cost of any service or goods you provide that are not repaid by your tenant (such as electricity, central heating, telephone, service charges, water and refuse collection) as a deductible against your income.
Insurance
If you’ve taken out any insurance policies relating to rental properties, you’re entitled to claim back on any premiums. This includes policies against fire and public liability.
Professional Fees
It’s tax-deductible if you’ve paid a professional to provide you with any legal or accounting services relating to your property – to have leases drawn up or to aid you with Stamp Duty, for example, or to prepare rental accounts. Also included are any estate agents or marketing fees.
Property Management Company Dublin
At KPM Group we have over 25 years experience in property management across Ireland. We have an experienced group of in-house accountants so contact us here at KPM Group today and a member of our team will be happy to help in any way we can.
