Your property-related questions answered
Which landlord’s expenses are tax deductible?
Q I am a PAYE worker with an apartment which I rent out. I am filling out my Form 11 so that I can file my 2009 taxes. This year the new tenant asked for a Building Energy Rating (BER) cert (which cost €250); and I paid the NPPR tax of €200. Can I write these off as regular landlord’s expenses?
Revenue considers the BER cost as a legitimate expense but not the Non Principal Private Residence tax (NPPR). The latter is controversial, as some landlords believe the NPPR should be considered a normal business expense.
This issue should come even more sharply into focus if this tax rises in the coming budget from the current level of €200 to something far higher. It is safe to speculate at this stage that most landlords fully expect (and dread in a time of falling rents) a significant rise in this annual tax.
To make sure you are claiming all your expenses you first need to find out what they are, so take a look at revenue.ie, and search “rental income” to get a clear idea of what you can deduct. If you feel that filling out the tax return is too difficult, you should consider getting an accountant to do it for you.
Any quick fixes to improve BER rating?
Q We are putting our house back on the market and want to give it the best shot. The agent asked about the BER for the brochure – we haven’t had it done yet but want to make it as high as it can be. Are there any simple, quick (but not expensive) things we can do?
The big things that influence a BER can’t be done simply, or at all. Factors that are taken into account during a BER assessment include the dimensions and orientation of the house, the number of storeys and the type of heating system. You are hardly going to install double or triple-glazed windows or change the entire heating system at this stage and, in any case, most agents would advise against major expenditure in advance of a sale.
However there are some simple DIY-friendly steps you can take. Start with your hot water cylinder. Ideally it should be one of the factory insulated models, but at the very least you should put on a new lagging jacket and make sure it fits properly. Have a look at the open pipework in your house (look in the hotpress etc) and make sure it is insulated. Replace as many traditional light bulbs as you can with low voltage CFLs – if you have multiple halogen downlighters this will prove a problem.
Improve the insulation in the attic – your attic is probably already insulated but it’s worth a look and it is simple to do.
Get a BER surveyor out to look at your house and advise on exactly what you can do – they are trained to give this sort of advice. You might be told to leave well enough alone if, for example, the house needs an extension or major renovation.
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
