Second Property expenses...

[artdes]

Hi
I purchased a 2nd property and raised the cost via 40% borrowed on first house i.e re-mortgage, and 60% loan on new house.
My query is, as a landlord can I claim 75% of the interest on the overall loan or am I only allowed to claim on the portion of the loan associated with the rented property?

I also acted as the agent for letting the property, can I claim any expense for this?
Thanks

 

[twofor1]

Only interest paid on monies borrowed for the purchase, improvement or repair of your rental property are deductible (75%)

If you paid advertising fees letting the property yourself these costs would be deductible, but you cannot claim a deduction for your own labour.

Lots of other questions also answered here;

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section7

 

[ajapale]

Moved from Askaboutbusiness to Property investment.

Please post in the correct forum/subforum.

 

[DB74]

In fairness to the OP, the question is about allowable expenses against rental income so Askaboutbusiness or Taxation would be more appropriate than property investment.

 

[Mrs Vimes]

The interest due on the portion of the loan which is secured on your main residence is allowable when calculating the tax due on the investment property.

It is the purpose of the loan and not the security provided that determines whether interest is allowed.

Sybil

 

[artdes]

Thanks Mrs Vimes...I was hoping this was case otherwise it would appear that I am making a profit on the rent received when in reality this is being used (in addition to my own funds) to repay the overall loan borrowed for this property!