Tax on inherited rental property

[dino]

Hi,
In 2017 I inherited my late wife’s apartment. This has been rented out for years. There was a clause in the will that required me to repay €20k to my late wife’s sister on the sale of the apartment or at my convenience. I paid this money to my sister-in-law in 2017 so she no longer has claim on the property. This was done above board and through my solicitor.
The €20k was repayment of a loan that my late wife’s sister gave her to buy the property.
I have this property rented out since but there is a big tax bill as there is no mortgage on it.
Can I claim anything on my rental expenses for this extra €20k incurred?

 

[Ravima]

no, you can't.

If the loan was given interest free, you might have to pay tax on that though.

 

[dino]

Okay thanks. I’ll discuss further with my accountant

 

[Bronte]

In my view the tax liability belongs to your wife's estate. Which if it only consists of this property will come out of that property. In other words you inherit once all her debts have been paid. Maybe there is some leeway from revenue on penalties and interest in such a scenario.