1. What is Rental Income Allowable Expenses?

In Ireland, landlords can deduct certain expenses from their gross rental income to calculate their taxable rental profit. These allowable expenses include repairs, insurance, mortgage interest, management fees, and wear and tear allowances.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Rental Income — Total rental income before expenses
• Repairs — Cost of maintenance and repairs
• Insurance — Property insurance premiums
• Interest — Mortgage interest payments
• Management Fees — Letting agent fees
• Wear and Tear — Allowance for furniture and equipment depreciation

3. Importance of Calculating Net Rental Income

Details: Accurate calculation of net rental income is essential for proper tax reporting in Ireland. Only certain expenses are tax-deductible, and knowing your net income helps determine your tax liability.

4. Using the Calculator

Tips: Enter your gross rental income and all applicable expenses in EUR. The calculator will compute your net rental income after allowable deductions.

5. Frequently Asked Questions (FAQ)

Q1: What expenses are not allowable?
A: Capital improvements, personal use expenses, and costs not wholly related to the rental property are not deductible.

Q2: How is wear and tear calculated?
A: Typically 12.5% of the cost of furniture and appliances over 8 years (for properties let furnished).

Q3: Can I claim mortgage principal payments?
A: No, only the interest portion of mortgage payments is deductible.

Q4: Are utility bills deductible?
A: Only if they are included in the rent and paid by the landlord.

Q5: What records should I keep?
A: Keep all receipts and documentation for at least 6 years to support your expense claims.