Panel C: Irish rental income — page 10
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
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.