Is local property tax allowable against rental income

Landlord LPT

Is local property tax allowable against rental income

Is local property tax allowable against rental income 275 183 Ralph Smith

This is a common question from landlords. Is LPT an allowable deduction against rental income?LPT is a self-assessed tax charged on the market value of residential properties in the State. Liable persons must pay their LPT liabilities on an annual basis.


Unfortunately the answer is no local property tax is not an allowable deduction.

What expenses are not allowed?
You cannot deduct the following expenses when you are calculating your rental profit or loss:

pre-letting expenses, other than property fees before you first rented out the property. However certain pre-letting expenses on vacant residential property may be deductible.
post-letting expenses
capital expenses on property improvements unless allowed under an incentive scheme
expenses on premises rented out on an uneconomic basis, where it is not possible to make a profit from the rent received
expenses in between renting out the property in certain circumstances
interest from the time you buy the property up until it is first rented out
Local Property Tax (LPT)
any cost for your own labour when carrying out repairs to the property.




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