How to reduce tax liability on rental income

[Unregistered]

I am in the process of purchasing two apartments for rental. I will borrow c250,000 and I will get about 1,700 p.m. rental. After capital allowances have been written off over 5 years I will start paying tax on rent, even alllowing for mortgage interest payments. I calculate I will pay c 100,000 Euro over the life of the mortage in tax. Is there any innovative way I can reduce this liability legally...?

 

[Purple]

Have a lookhere at the FAQ's in this section for the deductibles. Other than that you should talk to an accountant but most schemes involve investing more money in other areas.

 

[pad]

buy a section 23 or a section 50 property. this scheme runs out in june 2006 so you need to get on the ball quickly.

 

[Purple]

The premium you pay for a section 23 property means that it is really only cost effective if you have (at least) one other non section 23 property to shelter as well. Or you can do what I did and buy one between a friend or family member and yourself.