Rental Income Tax Return - Allowable Expenses

J

jamesgm

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Hi, can someone clarify the following for me:-

- Moved into a new house as PPR in Feb2008 (I bought it, not rented)
- First tenant moved into old house in Apr2008

Can I claim expenses on repairs/skip hire/van hire incurred in the period Feb08 to Apr08 preparing the house for rental even though technically no tenant moved in until Apr2008. My thinking is it was no longer my PPR from Feb2008 so was an investment property from that time.

Thanks,
James.
 
I'm afraid your can't claim these. Below is an extract from the revenue guide to rental income/expences. The link to the full version is
http://www.revenue.ie/en/tax/it/leaflets/it70.html#section7
What expenses cannot be claimed for?

  • Pre-letting expenses, i.e. expenses incurred prior to the date on which the premises was first let apart from auctioneer's letting fees, advertising fees and legal expenses incurred on first lettings.
  • Post letting expenses i.e. expenses incurred after the period of the last letting are not allowable.
  • Capital expenditure incurred on additions, alterations or improvements to the premises unless allowable under an Incentive scheme
  • A deduction can be made only once. If a deduction has already been made in a person's tax computation, the amount will not be allowed as a deduction in arriving at the person's net profit/loss rent, i.e. you cannot obtain relief more than once for the same expense.
  • Expenses incurred in the letting of premises on an uneconomic basis are not deductible.



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Thanks Galway boy - I suppose the words "prior to the date" leaves no doubt on this one, I can't include them.

What about installation of a side gate & small area of decking - can I put them in under Wear & Tear at 12.5% relief over 9 years. Surely a piece of decking is no different to a piece of carpet !!!

James.
 
You depreciate stuff over 8 years, not 9.

If you have receipts to show they cost x this year then yes you can deduct them at 12.5% over 8 years.
 
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