Property Investment Tax Advice

[ger.mcmahon]

I have read the posts and have not come across a direct answer for my scenario.

My wife and I currently own 2 houses one of which is our home and the other which was our old home before building the new house is now let out. The old home which is now an investment property has no mortgage and our new home does. Can I take out (re-mortgage) a mortgage on the investment property to pay off my home mortgage for the benifit of tax purposes in being able to write off the interest of the mortgage on the investment property against the rental income. I am unsure if this is allowed as I am not purchasing a new investment property but rather getting a mortgage on an existing one.

cheers,

ger.

 

[delgirl]

Unfortunately not Ger, Revenue will only allow tax relief on a mortgage already in existence when the investment property was first rented out.

You are, however, entitled to re-mortgage the rental property should you wish to carry out any renovation or extension and the interest on this loan would qualify for relief.