The most common type of rental income is income generated from letting a house, flat, apartment, office, building etc.
Allowable Deductions
A person may claim a deduction from gross rent for legitimate property related expenses as follows:
- Ground Rent
- Rates
- Maintenance
- General Repairs
- Insurance
- Management Fees: paid to an agent e.g. rent collection
- Service charges
- Advertising for tenants
- Accountants fees for preparing rental accounts
- Wear and Tear - Depreciation of furniture and fittings
- Interest - Relief is due for 75% of interest paid on loans to purchase, improve or repair a residential premises
Rent a Room Relief
Rent a Room Relief - where a room (or rooms) in a person's principal private residence is let as residential accommodation, gross annual rental income of up to €10,000 is exempt from tax. This does not affect an individual's entitlement to mortgage interest relief or CGT exemption for a principal private residence.
