PROPERTY investors will be able to deduct the property tax from their rental income when filing a tax return.
The move could ease the burden on buy-to-let investors, many of whom are struggling to meet mortgage repayments.
The non-principal private residents (NPPR) and the household charge are not allowed as expenses when landlords are working out their profit as part of a tax return.
But Finance Minister Michael Noonan has confirmed the property tax may be treated differently. He said he intends to amend the new legislation to allow the tax to be treated as an expense for landlords.
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The same can be said of buildings insurance and ESB standingProperty tax is a tax on property ownership, not letting of property.
You pay it regardless of whether you let the house.
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Of course Revenues view is entirely open to a legal challenge.
The same can be said of buildings insurance and ESB standing
charges but I don't think you propose disallowing them.
Are not rates a deductible expense as per the relevant legislation?
Is not the local property charge a rate ? If not, what is a rate?
Yes, as regards the NPPR -certainly a rate (as strongly believed to be by the Tax Institute). Certainly collected by local authorities.
As regards local property charge:-
Local authorities, I thought, will have the discretion to vary the property charge by 10% either way-is that not the case ? Will this not mean that local authorities will levy the rate - within certain parameters set by government (Revenue). ?
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