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Rental income tax deductions

  • 03-09-2010 9:23am
    #1
    LadFromLimerick
    Registered Users, Registered Users 2 Posts: 78 ✭✭


    Hi there,
    Can anyone tell me if the cost of retiling a kitchen/bathroom would be considered a deductible expense for rental income tax purposes? I would categorise it as a maintenance expense (the previous tiles were crumbling) and therefore would be deductible. Other might say it’s a capital expense incurred on improvements to the premises and therefore not deductible.
    Would appreciate any opinions,
    Many thanks!


Comments

  • #2
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    it's capital expenditure and is not deductible but you can take a wear and tear allowance at 5% of the expenditure in the deduction.


  • #3
    Accountancy
    Closed Accounts Posts: 59 ✭✭Accountancy


    Mr. Incognito wrote: »
    at 5% of the expenditure in the deduction.

    Think you mistyped! 12.5%

    Also if the amount is not that much you can write if off in full against the income.

    How much did it cost?


  • #4
    LadFromLimerick
    Registered Users, Registered Users 2 Posts: 78 ✭✭LadFromLimerick


    The job cost about €2500. So am I right in saying that the cost is definitely deductible so? Either the total amount in year 1 or as a capital allowance over 8 years?


  • #5
    Accountancy
    Closed Accounts Posts: 59 ✭✭Accountancy


    The job is def deductible.
    I would probable tell you to capitalise it and write it off over the 8 yrs.
    But there is always an arguement for the full write of as it is replacement.

    Call your local tax office and they will tell you over the phone. Make sure to get the name of the person you speak with.

    HTH


  • #6
    paddydriver
    Registered Users, Registered Users 2 Posts: 2,087 ✭✭✭paddydriver


    I would class this as repairs and should be something you can take off in full that TY - white goods and furniture etc would be done at the 12.5% rate.

    These days if you want to get good tenents you near need to be repainting after every rental to give it a refresh and that would definitely be a cost associated with getting the rental; such as if you use advertising or agents etc.

    My thoughts...

    Great doc on revenue as regards what you can and can't claim for - cannot remember the name but would be easy to find with a search.


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