Landlord Rental Tax Returns 2016 - The loan Interest Issue

Given that you should have your 2015 P60 at this stage, most landlords are now preparing their 2015 tax returns. If you are a landlord and have a mortgage, you will be well aware that only 75% of your loan interest is allowed on residential property. If you own commercial property, then 100% of the loan interest is allowed.

One thing to note - A new rule change was introduced in January of this year. It states that where landlords make their properties available to tenants availing of social housing supports, they could eventually claim 100% of the loan interest.

Now, it’s a little complicated however. The landlord will have to wait three years to claim the extra 25% interest relief. The relevant schemes include:

As a landlord, you must submit an undertaking to the Private Residential Tenancies Board (PRTB) stating that you commit to renting a residential property to qualifying tenants for 3 years and this must be done in 2016.

The declaration can be found here.

On another note, TaxHug received a couple of queries recently which centred around claiming loan interest incurred during a period of vacancy between lettings (10 months)  and whether it is still allowable as an deductible expenses. Revenue will allow this expenditure once the landlord is making a suitable effort to let out the premises.