I am advised by the Revenue Commissioners that a person in receipt of rental income is assessed to income tax on the net amount of the rents received, i.e. the gross rents less allowable expenses incurred in earning those rents. In computing the net amount of the rents received, only those deductions that are specified in the Taxes Consolidation Act 1997 are allowable. The legislation is quite clear in this matter. Section 97 of that Act 1997 sets out what are the allowable deductions in computing rental income. The main deductible expenses are:
Any rent payable by the landlord in the case of a sub-lease.
The cost to the landlord of any goods provided or services rendered to a tenant.
The cost of maintenance, repairs, insurance and management of the property.
Interest on borrowed money used to purchase, improve or repair the property.
Payment of local authority rates in the case of rateable properties used for commercial purposes.
Payment of the Non-Principal Private Residence charge is not an allowable expense in computing taxable rental income as it is not included on the list of allowable items.