Advice on offsetting tax on income

[Melbourne2013]

Hi there guys- my parents gifted me a small commercial property ( small hardware shop) . I receive 1000 rental income per month. Expenses include the annual mgt fee with some painting etc which I know I can off set.there is no mortgage outstanding on the property. I am a PAYE worker and on the higher rate of tax. I am looking to buy my own apartment- I can only get a mortgage of 189k which isn't a lot in Dublin. My question is can anything be done to offset the amount of tax I have to pay on the rental income on the shop- is there any options around remortgaging to reduce tax and help with current mortgage application- many thanks - E

 

[Joe_90]

Only expenses related to the property are allowed as a deduction. So if you remortgage you can't get a loan to buy the property so the interest is not allowable.

What did your advisors tell you before your parents gifted you, a higher rate tax payer, the property?

 

[Melbourne2013]

Hi Joe- thanks for the email- we only dealt with solicitors- I haven't received advice on it- I'm planning to meet with accountant next week-