The Department of Finance is to review options on the tax and fiscal treatment of landlords amid fears that a widespread departure of small-time landlords is adding to challenges in the housing market.After being castigated in the years following the financial crisis and the near collapse of the Irish property market, there are now fears that a widespread departure of the small-time landlord is adding to challenges in the residential rental market.
“We feel that there needs to be some incentive to keep smaller landlords in the market,” says Crona Clohisey, tax and public policy lead with Chartered Accountants Ireland, adding that “a lot of landlords are probably choosing not to rent out properties because of costs”. “It’s not considered as a business, and this concept is behind a lot of the thinking and taxation burden being put on landlords,” says Allen, noting that, when it comes to improving energy efficiency for example, “you can get tax write-offs for other businesses”, but not on rental properties, while you also can’t avail of retirement or entrepreneurial relief when you sell your property.
“Depending on where the property is, it can be quite a whack of money. It seems to be unfair,” says Allen. Legitimate expenses, such as pre-letting costs for example, can’t be included in a tax calculation. Allen adds that the legislation also means that if you go to a training course on how to be a landlord, for example, the cost of this course would not be deemed to be an allowable expense.
“If you make a loss on sweet shop, you can offset those losses on other income, but you can’t offset rental losses,” says Allen.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: businessposthq - 🏆 8. / 71 Read more »