Holiday rental - tax allowances etc

S

SWK

Guest
Hi,

Some questions I hope someone can help with.

- I am looking to buy a specific Rental Property in Ireland. No Tax Relief (Sec 23 etc) - Cost €250k-300k
- I have a mortgage of ~€125k on my PPR which is valued at ~€600k
- My plan was to re-mortgage or extend current mortgage to cover the cost.
- I understand that I can't claim any of the additional mortgage interest as TRS.
- I am assuming that I can claim the proportion of the interest attributable to the Holiday Home loan (say €300k) anually as a cost to offset against Rental income..
- Is this correct?
- Any complications because I am trying to do it all under one mortgage? Any benefits in having 2 seperate mortgages?
- What other costs can I allow against Rental Income? I assume Maintenance, Rental Costs... How about Annual insurance, Service Costs (for the maintenance of common areas) ?
- General question (whinge really!) on TRS. It seems strange that if I were to move to a different PPR for 500k, I could claim TRS against the full amount, but can't for the lesser mortgage. I plan to try to assign more value to the work I have done to upgrade the house over the last few years as part of the re-mortgage.
- One Question I am unclear about: The Holiday house will be available to rent for 52 weeks of the year, but I only realistically expect to be able to rent it for 8-16 weeks (Munster sea-side) . Question is, can I claim the allowances for the full-year costs? Mortgage interest etc. Secondary question, does the answer change if I use the house myself for any of the vacant weeks?

I have a few assumptions above, I'd appreciate if someone could confirm or deny them...

Thanks in advance for your help...

SWK
 
One last push, Can anyone throw any light on my query here?


Thks
 
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