Rental property costs - Expense or Capital

figures21

I have a rental property which I manage myself.

Had to replace the central heating boiler this year (over 20 years old). Is that an expense (to be written off against income this year) or a capital spend (to be written off over 8 years)?

Also, I spent over €1,000 last year on heating & insulation (cavity walls and attic, heating controls). Same question - expense or capital?

Any assistance would be much appreciated.

mwalsh7

hi,

heating & insulation is defo capital.

The boiler could be put down to repairs and renewals. However you will have to stand over and argue in the case of a Revenue Audit. Make sure the invoice have replacement and repairs!

dbran

Hi

Its unlikely that installation of a completely new boiler would count as repairs. They come in at about 3k and you have probably enhanced the property significantly. I think you would loose the argument. I would say capital.


Regards


dbran

figures21

Thanks to mwalsh7 and dbran for the replies.

If both are capital, does that mean that I write them off over 8 years?

dbran

Yes

You will have to write them off over 8 years.

Regards

dbran