THERE IS MUCH gnashing of teeth at the Institute of Professional Auctioneers and Valuers (IPAV) which is set to lobby the Minister for Finance to have the new €200 levy on non-principal private residences made tax-deductible from rental income.
Addressing an IPAV seminar in Cork this week, the IPAV chief executive Fintan McNamara said thatthe Finance Minister Brian Lenihan had recently confirmed that the €200 charge is not tax-deductible.
“In our view this is most unfair as this new charge applies to every unit of accommodation and so a private investor can end up paying multiples of the charge where he/she owns a number of units in one house,” said Mr McNamara.
He said the IPAV will lobby the Minister for Finance to amend the Act to allow the charge become deductible.
“This is simply another charge like rates or any other charge and should be allowed as a genuine expense,” he said. “Furthermore, this charge could increase in the future and investors could be presented with an utterly unwieldy bill at a time of vastly reduced rents.”
Mr McNamara called on the Minister and Government to bear in mind the depressed state of the marketplace when formulating the Budget. He said it should put in place measures which would let private investors continue to provide accommodation at reasonable cost.
