Peter Hegarty owns a number of properties. Details of each property are noted below and you are

required to calculate Peter$$s taxable income for $2023.$

$$ Property A

This is a retail shop located in Dublin. It was purchased by Peter on $1$ February $2023$ and let for the

first time under a $15-$year lease agreement on $1$ June $2023.$ The monthly rental income is $5,000$

with an initial lease premium of $40,000.$ The only expense associated with this property is the

interest on the loan of $20,000$ for $2023.$ The loan was taken out on the date of purchase.

$$ Property B

Peter bought this property in the South of France for $100,000$ on $1$ September $2022.$ This property

has been rented to a retired couple for $1,000$ per month since then. Rental income of $10,000$ only

was received in $2023$ as the tenants had deducted the cost of repairing the roof which was damaged

in storm.

$$ Property C

This residential property was acquired by Peter on $31$ January $2023.$ He funded the purchase of this

property with a loan from his local bank. The property is split into two apartments, a ground floor

apartment and first floor apartment, both apartments being of equal size. The ground floor

apartment remained unoccupied throughout $2023.$ The upstairs apartment was let on $1$March $2023$

with a reduced monthly rent of $400$ to Peter$$s elderly Aunt, when normal rent was expected

$1,000$ per month.

Expenditure associated with this residential property is as follows:

$$

Interest on loan from $31$ January to $31$December $20237,000$

Insurance from $31$ January to $31$December $20236,000$

Mortgage protection policy premium $500$

Extensive renovation costs to ground floor apartment after water leak $4,200$