Holiday Rental Taxation

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Fatrichdude

Guest
I have just purchased a property in west cork that I intend to rent for a few weeks during the summer. Dose anyone know if the revenue will allow me offset a full years Mortgage interest against a few weeks rental income.?

I have a second property that is rentrd on a full time basis will they accept a return where I report total income for both properties and total interest paid for both properties. ie can i group both properties together and offset a profit on one against a loss on another??

Rgds

Fat (but Dumb) Rich bloke
 
Sounds like your rental property in west cork isn't really a rental property at all? It's a second home for yourself that's rented out for a few weeks a year? So the mortgage interest would probably not be deductible in this case, but the rental income would be taxable. That's what it looks like to me based on what you have said.

Sounds like you need to talk to a professional... If you don't mind me asking, why are you getting into rental property investment without knowing how it works financially?
 
The house will be avalable for rental on a weekly basis throughout the year but it is likely that tennants will only be found during the tourist seasons ie June to August and some holiday periods at Easter new year etc.

My question is will revenue accept rental income made during these periods(probably 12-15 weeks) against expenses including mortgage interest incurred during the full 12 month tax year.

All replies appreciated!!

Fat rich bloke
 
The guide is of some use but it dosent seem to indicate a situation where I use the house for a week or two off season.
It says expenses are only allowable between lettings where the house is unoccupied.

If I use the house for say two weeks in December to I deduct two weeks expenses ?

What do the Revenue expect in this not too unusual situation??

Fat Rich Dude
 
If you don't get an answer here (and possibly even if you do!) you should check with Revenue directly or get the advice of an accountant as to the correct tax treatment in this context.
 
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