Question re. tenant / pre-tenancy for renovations to be tax deductable

[irishbogger]

Hi folks,
I have just acquired an apartment which I intent do renovate. (It's a 15 yr old apartment, tenants have just moved out)

It is my understanding that any renovations pre-tenancy (since my ownership) is not tax-deductible, but renovating in between tenancies is tax deductible.

Is this correct? If so, does the first tenant have to be there for a minimum time? I ask because I am considering renting out the apartment for a month (I know someone who will rent it for that length), and then renovating when they move out - thus any renovations will be tax deductible.

Would this work? Thanks for any help

 

[Bronte]

Shaky ground this. There is no minimum term but make sure you register with the PRTB, and that you have a proper trail of the rent from that tenant in the event of a revenue audit. I wouldn't like to be explaining it to revenue. But on the other hand if you legimitely rent you've done nothing wrong. I try to do everything right but revenue always scare me because they are so powerful.

 

[irishbogger]

Thanks for the info. Seems to be more hassle than its worth for the few quid that would be saved via tax-deductables. It would mean i'd have to register the short-term tenant (1 month) with the PRTB for 70euro. It was a friend and tbh they'd only be paying about 70euro a week anyhow for 4 weeks.

 

[Bronte]

I think you'd be right. Don't forget re the low rent, there is a revenue rule about that, something about below market rent. Have a look at the revenue website.