A number of problems continue to appear in the Revenue reviews of landlords and rental accounts.
- Disclose all Rental Income – Both rent received and receivable.
- Register with the Residential Tenancies Board – Or lose your mortgage interest deduction which goes up to 80% in 2017.
- Fixtures & fittings – Be sure to claim the annual write down allowance correctly.
- Consider VAT on property:
– Is VAT charged on Rents?
– Will you have to a Capital Goods Scheme adjustment?
Landlords should not:
- Do not claim capital expenditure – Repairs are fully deductible.
Capital allowances can be claimed on fixtures and fittings. Capital expenditure is enhancement expenditure allowed against a future sale of the property.
- Do not claim:
– Expenses for your own home
– Estimates for your own labour / gardening work
– Pre-letting expenses (other than advertising, legal & letting agent fees)
Accurate rental accounts should be prepared every year. In the information age that we live in it is more important than ever to maintain proper books and records to back up all claims.
If you require help with any matters raised in this article please email firstname.lastname@example.org.