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bigduckontax
bigduckontax, Accountant
Category: Tax
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Is the mortgage interest deductible in arriving at taxable

Customer Question

Is the mortgage interest deductible in arriving at taxable rental income?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Indeed it is; mortgage interest, but not repayment of capital, is allowable against rental income.
I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 2 years ago.

Thank you

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.
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Expert:  bigduckontax replied 2 years ago.

Thank you for your support.

For your information the following expenses can be deducted from rental income [source Which Magazine]:

'The most common types of expenses you can deduct are:

  • water rates, council tax, gas and electricity
  • maintenance and repairs to the property (but not improvements)
  • contents insurance
  • interest on a mortgage to buy the property
  • costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
  • letting agents' fees
  • legal fees for lets of a year or less, or for renewing a lease of less than 50 years
  • accountant’s fees
  • rents, ground rents and service charges
  • direct costs such as phone calls, stationery and advertising for new tenants

The expense should be incurred wholly and exclusively as a result of renting out your property.'