A. In short, the answer is yes. Even if you are making a loss on a rental property you have to report this to the Revenue Commissioners.
You should also note that it is only a portion of your mortgage interest that is allowable against your rental income and not your entire mortgage repayment.
You can claim mortgage interest as a deduction:
- while your property is rented out
- in between renting out the property as long as you do not live in it during that time
- if you are registered with the Private Residential Tenancies Board (RTB).
You cannot claim a deduction for mortgage interest between the time you buy the property and the time you first rent out the property.
From 1 January 2017, you can deduct 80% of the interest paid on your mortgage on a rental property. For earlier years, the figure is 75% of the interest paid.
In certain situations, you may be able to claim 100% mortgage interest relief. To qualify you must:
- rent out your property for three years to tenants receiving certain social housing supports.
- be registered with the Private Residential Tenancies Board (RTB).
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.