What you can't expense

There are a variety of expenses that are commonly included as expenses on tax returns, but in reality are not an eligible deduction.

Stamp Duty

If you purchase a property with the intention of renting it out, you'll have to pay 1% Stamp Duty on any purchase up to €1,000,000 and 2% balance on any amount above that. It's important to keep in mind that money paid on Stamp Duty can't be expensed against your earnings.

Food

Food is very rarely allowable as an expense. Should an event arise where you undertake a business trip related to your Airbnb accommodation, you can expense any related food costs from the trip.

However, if you want to boost your accommodation offering by providing a free welcome basket of fruit to your guests, you can't include these costs as an expense. And, if you meet someone for lunch, you can't generally claim that as an expense.

Commuting

Costs relating to a commute are also rarely applicable. For example, if you are non-resident at your Airbnb offering, you can't expense any costs that occur from traveling to and from the accommodation.

Entertainment

If you want to treat a client to a night out at a concert or show, you generally can't use these expenses to reduce your tax bill.

Other non-allowable expenses:

• Your own pay
• Clothing (with some exceptions)
• Interest on late payment of tax, e.g. VAT, PAY/PRSI, etc.
• The creation or increase of general provisions, e.g. general bad debt provisions, general inventory provisions etc.
• Provisions for repairs
• Motor leasing expenses (for certain categories of cars) – with effect from 1 July 2008, the amount of lease charges which are allowed in calculating taxable income will depend on both the price of the car and its CO2 emission.
• Depreciation – however, the expenditure may qualify for capital allowances
• Charitable and Political subscriptions – however, trade subscriptions are allowable
• Other tax charges – e.g. parking fines, stamp duty, etc.

If the expense is disallowed for tax purposes, it can't be claimed against your self-employment income.