Back to Basics: Case V Income - Rules of the Road


Back to Basics

Case V Income - Rules of the Road

In the midst of the busy filing season for corporation tax and income tax, Paul Dunlea, a Senior Tax Manager in Deloitte, outlines the tax rules of the road for private landlords in the Irish property market


In Leo Tolstoy’s How Much Land Does a Man Need? (1886), a man’s obsession with adding evermore land to a portfolio that currently provideshim with a very comfortable living results in hisuntimely demise. In the end, the author reflectsthat, “six feet from his head to his heels was allhe needed”.

Accountants recognise the value of landby the fact it is not generally depreciated. Governments benefit from this value viaproperty taxation. Landlords keep after-taxprofits. In recent times it has been askedwhether this is enough to keep landlords in themarket. While property prices have in certaincases improved significantly since the propertycrash of 2008, the tax incentives available toprivate landlords have not.

In this back to basics review, we’ll revisit thefundamentals of how case v income is calculated,outline the expenditure which continues to be taxdeductible to the private landlord, and provide anoverview of some of the areas in practice in whichdifficulties can arise.

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