Buying an Investment Property

N

norbert

Guest
I have two investment properties on the go. Although I have little cash flow, I am interested in getting another mortgage and buying an Irish holiday home without any tax incentives (sec 23). Is there anyway that I can buy the holiday home, rent it out a small bit and help with the monthly mortgage payments by writing the rental income from one of the other investment properties?
 
You can buy another property and offset the mortgage interest against tax. The revenue cares about your total rental income and your total expenses, not each individual property. The holiday home will be liable to capital gains tax of course, should you sell it later at a profit.

To be able to claim the mortgage interest however you'll have to register a tenancy with the PRTB.
 
Thanks Murphaph for reply. I see what you are saying about informing the revenue of the total rental income. If I was buying the holiday home, would it not be difficult to register with the PRTB if you have a few different people only renting the house for a few weeks here and there. Furthermore, I would intend keeping it free for some of the year for family and friends. Any thoughts?
 
norbert said:
If I was buying the holiday home, would it not be difficult to register with the PRTB if you have a few different people only renting the house for a few weeks here and there.
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Holiday lettings do not require registration with PRTB

http://www.revenue.ie/en/practitioner/tax-briefing/63/tb01.htm" said:
Section 3 of the Act lists the types of dwellings that are excluded and in respect of which there is no requirement to register tenancies. The main exclusions include:
  • Business premises
  • Former rent controlled dwellings occupied by the original tenant or by his/her spouse
  • A dwelling let by a local authority or a voluntary housing body
  • A dwelling occupied under a shared ownership lease
  • A dwelling in which the landlord also resides (this would include the ‘rent a room’ scheme)
  • A dwelling in which the spouse, parent or child of the landlord is resident and where there is no written lease or tenancy agreement
  • Holiday lettings
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