Rental Income - Mortgage Interst Relief?

[Deeindublin]

Hi All

I own an apartment which was my Principal Private Residence until August 2007.

I bought it in 1999 and a couple of years later paid the mortgage off.

I remortage part of the property in 2007 in order to build a house for my aged mother. The house in question is on her land and in her name.

I now live next door to her in her own family home (still in her name)

I have the apartment rented out and am declaring the income on it.

Am I entitled to offset the mortgage interest on the rent?

Thanks

 

[Berni]

No, as the mortgage wasn't used to purchase the rental property.
The purpose of the loan is what is relevant, not which property it is secured on.

 

[WaterSprite]

I don't believe so, sorry. Mortgage interest is only offsettable if it's a mortgage taken out to buy/renovate the rental property. I don't think the mortgage has to be on the rental property itself, but the mortgage has to be taken out for the purpose of purchase/improvement of the rental property. In your case, the opposite is true - you took out the (re)mortgage on the rental property but used the money for a different property.