Claimable rental expenses after tenancy

P

PickerUpper

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After renting out our apartment for the last ten years, our last tenant left last week ( quietly, cleanly and three months early!).

We're now cleaning it up to sell asap.

What expenses, if any from the clean up and sale process can we claim for against rental income for tax?

We'll have to do a full return for 2019 as normal, but income for 2020 will be only one month's rent and the full sale value.

We'll probably use the same accountant as previous years but I'll keep my receipts if I can claim them.
 
Post-letting expenses are not deductible in calculating your rental profit.
 
You can only use against CGT I think. Can’t offset against rental income. Always hang onto receipts!
Your income tax return is for the return of rental income.
capital gains tax is for the sale of the property less expenses.
 
RENT

What expenses are not allowed?

This page is a list of expenses that cannot be deducted from taxable amount of rental income
www.revenue.ie www.revenue.ie

Not allowable:

post-letting expenses

The OP can deduct the auctioneer and solicitor fees from the calculation of the CGT.

CGT

How to calculate CGT

This page explains how Capital Gains Tax is calculated
www.revenue.ie www.revenue.ie

What are ‘allowable expenses’?

They are costs that you can deduct from the sale price to work out your chargeable gain. These can be:

  • any money spent by you which adds value to the asset (known as ‘enhancement expenditure’)
  • costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.
 
Thanks all, we won't have any CGT, so nothing to claim against there.
The solicitor, estate agent, etc are sale- related, not rent- related so nothing there either then.

No harm, I'll just be glad to get it sold- even if I have to pay the full tax demand!
 
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