Ruth Coppinger (Dublin West, Socialist Party)
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118. To ask the Minister for Finance his views on the income that is deductible for taxation purposes from rent on a property which has a mortgage loan on it and where the property owner owns no other property and is not deriving a net income from the rent (details supplied); and if he will make a statement on the matter. [45847/15]

Michael Noonan (Limerick City, Fine Gael)
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As regards properties that are rented, an individual may be allowed a deduction of 75% of the interest paid on borrowed money used to purchase, improve or repair rented premises when calculating rental income. There are also a number of other allowances and deductions available to reduce the tax on rental income paid. These include, for example, the cost to the landlord of any goods provided or services rendered to a tenant and the cost of maintenance, repairs, insurance and management of the property.

The Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income. It sets out the amount of rental income to be taken account of for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing rental income for tax purposes. This guide is available at:  .

In the current Finance Bill I have provided for a full 100% interest deduction where the landlord undertakes, for a period of at least three years, to provide accommodation to tenants in receipt of social housing supports and registers such undertakings with the Private Residential Tenancies Board within certain time limits.

I am conscious of the challenges that individuals continue to face, despite the improving economic conditions. However I would also note that the changes to the income tax system included in Budget 2015 mean that individuals who paid Income Tax and or USC in 2014 have seen a reduction in their tax bill in 2015 where incomes are equal. Budget 2016 is now continuing this process of reducing the tax burden on low and middle income earners including, among other changes, a decrease in the three lowest rates of USC announced to take effect from January 2016.