Interest costs on "development" land - allowable against rental profits??

[millertime]

I know a fella who has rental properties that are making a profit. However he's sitting on "development land" where the interest costs are accruing and there is no possiblity of selling/developing. The interest cost is racking up but he's unable to pay it.

Can this interest be offset against his rental profits??

 

[T McGibney]

No.

1. The development land is not a rental property.
2. Even if it was, it is not regarded by Revenue as an economic letting

 

[millertime]

Thanks for the response, do Revenue define what is an "economic letting"??

In any case given the land was purchased for development - which would be a considered a trade, these losses may well be case 1??

 

[T McGibney]

Assuming there are large sums involved here, your friend should probably get advice on these points.