Rental Income - Wear & Tear

caomhino

This may be covered already so apologies if so:

As i understand it from the revenue website:

"If a premises is let for residential purposes and it is furnished, a claim can be made for a wear and tear allowance based on the cost of the furniture and fittings. It will be necessary to retain an itemised list of expenditure incurred each year"

So, when clawing back expenses for wear & tear on a rental property, you can only claim back 12.5% for costs accrued in furnishing the house for that year ?? If you were to replace a washing machine / sofa etc in that year.. ?

i.e. I can’t say my furniture now is worth €10k so I’m writing off €1250 ?

thanks

MBateson

It’s 12.5% every year for eight years since you bought that asset.

So if you have rental income of 8,000 and the furniture valued at 10K as above, you take off the 1250 from the 8,000 and the resulting 6,750 is what gets taxed (assuming no other allowable expenses). You take off another 1250 for the next 7 years thereafter.

kennyb3

Also just to add its on new capital items.

Items replaced/repaired/renewed are expensed as repairs and maintenance in the year.

caomhino

cheers for the feedback:

So to clarify..that value I place on items (furniture) must be receipted ?
i.e. i can't claim back wear & tear for a sofa i bought 4 years ago's if i've no receipt ??

From the revenue..
"If a premises is let for residential purposes and it is furnished, a claim can be made for a wear and tear allowance based on the cost of the furniture and fittings. It will be necessary to retain an itemised list of expenditure incurred each year."

cheers

kennyb3

You need receipts. You are meant to keep all records/documentation for 6 years.