Landlords: 6 expenses that are tax deductible for Dublin landlords

There are many well-known financial sayings that are attributed to one of the American founding fathers, Benjamin Franklin. You may well have heard of

‘…A penny saved is a penny earned…’ and also  ‘…Remember that time is money…’

Both of which are very relevant to landlords of rental properties in Ireland.

However, in his most famous saying of all, Franklin remarked ‘…in this world nothing is certain except death and taxes…’

This may sound a little depressing, but it is undeniably true!

I heard the phrase recently when chatting to a landlord client. It made me think about how a landlord should ensure they minimise their tax liability on their annual rental income.

Whether you are an experienced landlord or looking to let your property for the first time, renting out a property in a busy market where rents are strong and demand far outstrips supply, should prove a lucrative investment. An annual return must be made to Revenue, based on rental income received and expenditure incurred. Tax will have to be paid on the rent received, but the amount of tax can be reduced by ensuring all claimable expenses are considered.

I have put together a list of 6 tax deductible expenses that all landlords should be aware of.

So, whether you are a landlord based in Dublin or overseas, make sure you take advantage of all your allowable expenses.

  1. Annual RTB registration fee – Yes…This is tax deductible!
  2. Capital allowances – ‘Wear and Tear’ on new items provided for a tenancy (calculated at 12.5% over 8 years)
  3. Any essential Repairs and Maintenance carried out during the tenancy.
  4. Accountants & Legal fees
  5. Insurance premiums – A consideration of any insurance premium relating to your rental property can be claimed as an expense.
  6. Estate Agent’s fees for the Letting & Management of your property.

Of course, I must highlight the most obvious expense that can be written off. That is the fees charged by Lettings Agents, for both the initial letting of your property, and for the ongoing property management.

With this being the case, why would a landlord choose to rent and manage the property themselves?

Consider all the headaches this brings:

  • Keeping up with constant legislation changes and your landlord obligations.
  • Carrying out regular property inspections
  • Responding to tenants’ issues in a timely manner
  • Arranging and co-ordinating necessary repairs
  • Collecting Rents to ensure no missed or late payments
  • Carrying out rent reviews in the correct format
  • Keeping monthly property account statements

Surely employing an agent to look after all the above for you, and writing off their fees as expenses is a no brainer??

Instead of paying tax to Revenue, make the liability work for you in freeing up your time and energy by employing a professional, licensed, Lettings & Management Agent.

In this sense…don’t we Letting and Management Agents technically work for free?

I wonder what Benjamin Franklin would say about that!

If you’d like to know more about our Letting and Management Service contact us here at Borgman Earls today.

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