Michael Ring (Mayo, Fine Gael)
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Question 95: To ask the Minister for Finance if a charge (details supplied) will be made allowable as a business expense for properties. [43792/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under the provisions of the tax Acts, 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 section 97(2) of the Taxes Consolidation Act 1997 are allowable. 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; and · Payment of local authority rates in the case of rateable properties used for commercial purposes. As payment of the new local authority charge for residential properties is not included on the list of allowable deductions, it is not an allowable expense in computing taxable rental income. As the Deputy will appreciate, in line with normal practice, I cannot make any further comment in relation to particular tax measures in advance of the Budget.