Panel C: Ir­ish rental in­come — page 10

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE -

I HAVE LET OUT A RENTAL PROP­ERTY DUR­ING 2016; HOW DO I CAL­CU­LATE MY NET RENTAL IN­COME? OU must cal­cu­late how much tax you owe on the gross rents re­ceiv­able af­ter de­duc­tions for ex­penses and al­lowances. A profit or a loss is cal­cu­lated for each rental source (res­i­den­tial or com­mer­cial). The rental in­come on which you pay tax is the to­tal prof­its less the to­tal losses. Al­low­able ex­penses in­clude: lo­cal au­thor­ity rates ground rents in­surance pre­mi­ums main­te­nance and re­pairs prop­erty fees be­fore you first rent out your prop­erty such as man­age­ment, advertising, le­gal or ac­coun­tancy fees 75pc of the mort­gage in­ter­est paid ex­penses in be­tween rent­ing out the prop­erty in cer­tain cir­cum­stances

cap­i­tal al­lowances

YIn or­der to re­ceive the mort­gage in­ter­est relief de­duc­tion, you must have reg­is­tered with the Pri­vate Res­i­den­tial Te­nan­cies Board for each te­nancy dur­ing 2016.

Your mort­gage provider should is­sue you with a mort­gage in­ter­est cer­tifi­cate at the end of each tax year which con­firms the to­tal amount of in­ter­est charged.

You can deduct the full cost of re­pairs and main­te­nance in 2016, but you must claim back the cost of ex­penses of a cap­i­tal na­ture, such as kitchen ap­pli­ances, as cap­i­tal al­lowances over eight years. Re­mem­ber that you can off­set losses brought for­ward from prior years against your 2016 net rental in­come in most cir­cum­stances. WHAT IF I HAVE SOME IN­COME FROM AIRBNB LETTINGS, DO I HAVE TO DE­CLARE THIS IN­COME? IF YOU have oc­ca­sion­ally let rooms or your en­tire home out un­der an Airbnb ar­range­ment you should de­clare the gross rental in­come and ex­penses in this Panel. If the lettings un­der Airbnb are more akin to reg­u­lar guest­house/b&b ser­vices then this may be clas­si­fied as a trade and should be re­ported in Panel B.

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