Allowable tax deductions on rental income - Travel?

dublin100

Registered User
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Hello all,
I rent out a house in Dublin but live elsewhere in Ireland. Can I claim teh cost of petrol for when I have to show the house to new renters/inspect the house? thanks
 
Yes, petrol/diesel for journeys to and from the premises in connection with the upkeep etc are allowed.

Keep a log of dates, mileage travelled and use a suitable mileage rate (see revenue.ie)
 
really??

Is there anywhere on the revenue site that mentions this? I cannot see it in ' A Revenue Guide to Rental Income - IT 70 '
 
Yes, petrol/diesel for journeys to and from the premises in connection with the upkeep etc are allowed.

Keep a log of dates, mileage travelled and use a suitable mileage rate (see revenue.ie)

My understanding was that this was a tricky area with revenue. What is your source for being allowed.
 
Yes, petrol/diesel for journeys to and from the premises in connection with the upkeep etc are allowed.

Keep a log of dates, mileage travelled and use a suitable mileage rate (see revenue.ie)

No way that claiming a mileage rate is going to fly - if a sole trader can't claim mileage then there's no way a landlord is going to be allowed it.

I don't really see how any travel costs for a landlord can be allowed - surely the place of business for the letting of a property, is the location of the property being let?

Have you ever seen a claim for this type of expense being allowed in a Revenue audit?
 
No way that claiming a mileage rate is going to fly - if a sole trader can't claim mileage then there's no way a landlord is going to be allowed it.

I don't really see how any travel costs for a landlord can be allowed - surely the place of business for the letting of a property, is the location of the property being let?
There is a cost involved in travelling to collect rent, but whether revenue will allow it is another matter. Landlords who do work (repairs) on their rental property are not allowed to deduct their own labour as a cost. That's an example of a real cost but it's not allowed.
 
No way that claiming a mileage rate is going to fly - if a sole trader can't claim mileage then there's no way a landlord is going to be allowed it.

I don't really see how any travel costs for a landlord can be allowed - surely the place of business for the letting of a property, is the location of the property being let?

Have you ever seen a claim for this type of expense being allowed in a Revenue audit?

Yes i have seen it allowed (on a concessional basis) but i should qualify this:

1) Mileage rate doesnt mean civil service rate, it would be at a much lower level

2) Mileage only claimed for trips relating to specific trips in relation to maintenance (not collecting rent as Revenue will obviously argue the use of EFT). This is the managing of the property

3) As already said detailed records are required.

So long as you arent trying to claim unrealistic expenses - such as 2*visits a week * 52 weeks a year * civil service rate - revenue are generally fair.
 
2) Mileage only claimed for trips relating to specific trips in relation to maintenance (not collecting rent as Revenue will obviously argue the use of EFT). This is the managing of the property

.
Don't get this about the electronic transfers, revenue cannot tell you how to run your business?
 
True but if they allow any expenses on a concessional basis, it is unlikely to be for trips to collect rent
 
'Concessional' really means at the whim of Revenue. If you're depending on a concession to stay out of trouble, and they change their minds for whatever reason, you're goosed. This sort of situation is best avoided altogether.
 
Yes i have seen it allowed (on a concessional basis) but i should qualify this:

1) Mileage rate doesnt mean civil service rate, it would be at a much lower level

2) Mileage only claimed for trips relating to specific trips in relation to maintenance (not collecting rent as Revenue will obviously argue the use of EFT). This is the managing of the property

3) As already said detailed records are required.

So long as you arent trying to claim unrealistic expenses - such as 2*visits a week * 52 weeks a year * civil service rate - revenue are generally fair.

Ah, ok I take your point, and I'd have no problem concessionally allowing a reasonable amount if I was auditing a case, but equally if I knew the guy was a chancer or tearing the This post will be deleted if not edited to remove bad language out of it, I'd have no problem disallowing it. I'd still rather just see a few petrol/diesel receipts though, rather than a mileage rate.
 
Ah, ok I take your point, and I'd have no problem concessionally allowing a reasonable amount if I was auditing a case, but equally if I knew the guy was a chancer or tearing the This post will be deleted if not edited to remove bad language out of it, I'd have no problem disallowing it. I'd still rather just see a few petrol/diesel receipts though, rather than a mileage rate.

Agreed, although as im sure you know yourself the problem here is put €20 in car - €5 trip re visit to say fix a window and then €15 personal use.

I think your middle bit is the key - an acceptable, sensible level is generally okay. Claiming 52 weeks (when everybody has 4 weeks holidays) and a high level rate just screams chancer.
 
I'm surprised to hear about this. What about properties which are abroad via a flight or ferry with car or even a drive across the border to the 6 counties ?
 
I'm surprised to hear about this. What about properties which are abroad via a flight or ferry with car or even a drive across the border to the 6 counties ?

If you can prove that an expense is wholly and exclusively incurred in the furtherance of the trade, then you'll be allowed it.

If you tried to tell a Revenue auditor that you flew to England every month to collect the rent for your UK rental property, its just not going to wash! But if you spent a week over there overseeing maintenance work on the house in between tenancies (and this could be proven because you would have receipts with the appropriate dates etc. from the tradesmen, hardware shops etc.) then I don't see why the travel costs wouldn't be allowable.

Of course there may well be precedent from an Appeal or Case Law in this area and I'm talking through my hat...!
 
If you can prove that an expense is wholly and exclusively incurred in the furtherance of the trade, then you'll be allowed it.

As I'm a landlord abroad I have had occasion to travel to Ireland on business, plenty of times I visited family as well but there were times where I had to come due to problem tenants only. I once asked on here and got a comprehensive reply on whether I could charge the trip, from an accountant on AAM I think, but it was someone who knew their stuff (Towager maybe if I recall correctly). Because it was 'wholly and exclusively' incurred yes I could charge it but the advice was not to as revenue don't like it and they might audit me so I never did charge it. It's a grey area as are so many areas with being a landlord and revenue.
 
the advice was not to as revenue don't like it and they might audit me so I never did charge it. It's a grey area as are so many areas with being a landlord and revenue.

Whats the downside of being audited if you believe everything is above board ? Is there not an upside in that it wont happen again anytime soon or do revenue audit people again and again?
 
Whats the downside of being audited if you believe everything is above board ? Is there not an upside in that it wont happen again anytime soon or do revenue audit people again and again?

It may have been true in the past, but re-audits are becoming more common, indeed I believe as part of each audit district's annual plans they aim to re-audit a proportion of recently audited cases...
 
... Landlords who do work (repairs) on their rental property are not allowed to deduct their own labour as a cost. That's an example of a real cost but it's not allowed.

The problem here might be that Revenue would have to employ quantity surveyors and time analysis type people to avoid landlords claiming excessively for repairs.

Also, DIY repairs might take a lot longer than a professional repair, so why pay people for their own incompetence.

I.E.. a landlord saying 'it took me five weeks to paint my house, please pay me'...
 
Claiming for your own labour would be a waste of time, because the value would be taxable as income.
 
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