TAXATION ON PRIVATE RENTAL ACCOMMODATION
Legislation under the Finance Act of 1992 requires all Letting Agents and Property Managers to make returns to the Revenue Commissioners on an annual basis listing details of properties let and managed.

The following details are requested:

•    Landlords name
•    Landlords address
•    Landlords PPS number
•    Address of the rental property
•    Rental income on the property

TAX FOR NON-RESIDENT LANDLORDS
Where the Landlord is a non-resident, the letting agent collecting the rent is liable to deduct tax at the standard rate of tax (20%) and forward same to the Revenue Commissioners. Where there is no agent the tenant is liable to deduct the tax and forward same to the Revenue Commissioners.

Champion Lettings must deduct this tax unless an accountant is appointed and is filing tax returns on the Landlords behalf. IN this case we would require a letter from the accountant to confirm this.


FINANCE ACT 1995
Legislation under the Finance Act of 1995 offers a tax relief to people paying rent in private accommodation. For people sharing accommodation each person will receive the allowance.
The following details are requested:

•    Landlords name
•    Landlords address
•    Landlords PPS number
•    Address of the rental property
•    Amount of rent being paid

The tenant can apply for this tax relief without the consent of the Landlord and without all the above information.


INDIVIDUAL TAXATION
As each individuals tax situation is different, it is of the utmost importance to consult your accountant or tax advisor on your position in relation to your tax. All letting, management fees and numerous other costs are tax deductible. Please note that Champion Lettings receive advice on an ongoing basis regarding any changes in tax legislation in relation to rental accommodation

PRIVATE RESIDENTIAL TENANCIES ACT 2004
All Landlords must register with the Tenancies Board (fine up to €3000 if property is not registered)

Budget 08 - €200 levy for each property



Part 1
What expenses can be claimed?

Broadly speaking, in calculating your rental expenses you can deduct expenses so long as they- • are incurred wholly and exclusively for business purposes, and are not of a capital nature.
The following are examples of the type of expenses that may be claimed for:
• Rents payable by the landlord in respect of the property, i.e., ground rent
• Rates or levies payable on the property, i.e., water rates, refuse collection etc.
• Cost of any service or goods provided by the landlord, i.e., gas, electricity, central
heating, telephone rental, cable television etc. for which they do not receive a separate payment • Maintenance, i.e., cleaning and general servicing of the premises
• Insurance of the premises against fire, public liability insurance, etc.
• Management, i.e., actual cost of collection of rents, advertising, etc.
• Legal fees to cover the drawing up of leases or the issue of solicitors letters to tenants who default on payment of rent.
• Accountancy fees incurred for the purposes of preparing a rental income account.
• Wear and Tear on furniture and fittings, i.e., carpets, cookers, central heating etc. (See page 4).
• Interest paid on monies borrowed for the purchase, improvement or repair of certain properties. This is covered in more detail overleaf.
• Repairs, i.e., decorating and general upkeep of the property. A 'repair' means the restoration of an asset by replacing subsidiary parts of the whole asset. Examples of common repairs which are normally deductible in computing rental profits include:
• exterior and interior painting and decorating
• damp and rot treatment
• mending broken windows, doors, furniture and machines
• replacing roof slates.
However, landlords may not claim a deduction for their own labour.
• Certain mortgage protection policy premiums with effect from I January 2002. Refer to Appendix I.
• Capital Expenditure on certain properties under the various Incentive schemes. What is the position with regard to interest paid on borrowings? Certain restrictions were introduced on the deducibility of interest on borrowed money used on or after 23/4/1998, in the construction, purchase, or repair of rented residential premises in the State, or 7/5/1998 in the case of foreign residential premises. However, the relief for interest on borrowed money was restored for such interest accruing on or after I January 2002. There were some transitional arrangements in place in the interim period. Relief is disallowed as respects interest accruing on or after 6 February 2003 where the let premises was purchased from the spouse of the person chargeable in respect of the rental income. However, the disallowance of interest relief does not apply in the case of legally separated or divorced persons. What expenses can be claimed for Wear and Tear? If a premises is let for residential purposes and it is furnished, a claim can be made for a wear and tear allowance based on the cost of the furniture and fittings. It will be necessary to retain an itemized list of expenditure incurred each year. • With effect from 4 December 2002 the allowance is 12.5% per year over 8 years. • For the period between I December 2001 and 3 December 2002 the allowance was 20% per year over 5 years. Transitional provisions apply allowing the rate of 20% per year over 5 years if the item was acquired under a written contract before 4 December 2002 and the expenditure was incurred before 31 January 2003. a Prior to I January 2001 the allowance was 15% per year for the first 6 years and 10% in the 7th year.