First time landlord: interest allowable as an offset to rental income is 75%?

G

Grimy

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Hi - First time landlord here. Could someone clarify for me that the interest allowable as an offset to rental income is 75% of just the interest portion of the mortgage repayments? i.e. not the full monthly repayment (where mortgage is not interest only)?
Cheers,
 
Grimy said:
Hi - First time landlord here. Could someone clarify for me that the interest allowable as an offset to rental income is 75% of just the interest portion of the mortgage repayments? i.e. not the full monthly repayment (where mortgage is not interest only)?
Cheers,
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Interest - Relief is due for 75% of interest paid on loans to purchase, improve or repair a residential premises (some exceptions).http://www.revenue.ie/en/tax/it/rental-income.html#section2
 
As an add on to this question, if a person remortgaged their main residence to purchase an investment property :)o), would 75% that portion of the home mortgage that was used to purchase the investment property be allowable against tax?
 
Is the 75% applicable from Apr 09, with 100% of interest charged deductible from Jan-Mar 09?
Cheers,
Geri.
 
geri said:
Is the 75% applicable from Apr 09, with 100% of interest charged deductible from Jan-Mar 09?
Cheers,
Geri.
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Correct - that is my understanding.
75% from 01/01/11 to 31/12/11 unless this changes in the upcoming budget!!! Unbelievable, they take your stamp duty and then undermine you!
 
I think the interest allowable expense works out as 82.5% for the 09 tax year.
75% for 2010

shej said:
In the four year plan has all the relief been scrapped?
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Not so far, but it is expected, I sincerely hope its not touched.
I it stays then the focus should shift to the election, Labour has said they will scrap it, FG have said they will keep it at 75% who knows in a coalition.
 
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