We can prepare your rental Income tax returns, Rental Schedules, W& T Computations, and drafting
of lease agreements for you.
Rental income is
• the letting of property, e.g. houses, flats, apartments, offices and farmland.
• easements, e.g. payments for the right to erect advertising signs, communication
transmitters or for the grant of a right of way.
• the granting of sporting rights, such as fishing and shooting permits.
• payments made by a tenant to defray the cost of work of maintenance or repairs to the
premises, which is not required by the lease to be carried out by the tenant.
• certain premiums, including deemed premiums and reverse premiums.
• conacre letting.
• service charges in respect of services ancillary to the occupation of property.
• insurance recoveries under policies providing cover against non-payment of rent.
What Expenditure Can Be Deducted?
Broadly speaking, deductible expenditure is allowable only to the extent that it:
• would be allowable if the receipt of rent were treated as the carrying on of a trade during
the currency of the lease or during the period in which you were entitled to the rent,
• is not of a capital nature, and
• is incurred by you.
Examples of expenditure which you can deduct when calculating your rental income or losses are as
• Rents payable by the landlord in respect of the property, e.g. ground rent.
• Rates which are payable to a local authority in respect of the property.
• The cost of any service or goods you provide and for which you do not receive separate
payment from your tenant, e.g. gas, electricity, central heating, telephone rental, cable
television, water and refuse collection.
• Property upkeep and maintenance e.g. cleaning and general servicing, exterior and interior
painting and decorating.
• Property insurance.
• Management, e.g. the cost of collection of rents and any fees incurred when advertising for
tenants. Accountancy fees incurred for the purposes of preparing a rental account.
• Repair works. Examples of common repairs:
1. damp and rot treatment,
2. mending broken windows, doors, furniture and machines,
3. replacing roof slates.
(However, you cannot claim a deduction for your own labour.)
• Interest on money borrowed to purchase, improve or repair the let property. (However
interest is restricted to 75% if the monies borrowed was used to purchase residential
• Certain mortgage protection policy premiums,
• Expenditure incurred between lettings in certain circumstances,
• Allowances for capital expenditure may also be available.
This is not an exhaustive list and other expenditure may be allowable.
Rent-a-room relief is an income tax exemption available to individuals who wish to rent out a room
or rooms in their sole main residence. In order for you to be eligible for this exemption your income
from the gross rents received and sum for any other service or meals supplied to the tenant must
not exceed the threshold for the year in question. (Currently €10,000 for the tax year 2014 and
€12,000 for the tax year 2015.)