tax relief on interest payments

[Haille]

I have purchased investment property last August and I have been renovating it since then. Not sure when it will be ready for letting as I am having trouble getting one particular builder to finish part of renovation.I have an interest only type mortgage.My question is if I do not get house ready for letting until Jan 2008 will I be able off set interest repayments made this year against rental income in Jan.for tax purposes. Do I have to let it before Dec.2007 to gain relief from Revenue for interest paid against rental income?

 

[Clarkey]

Form Revenue Website

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.