Painting rental property

blast06

Hi,

Looking for some advice !
I have a rental property that is need of painting on the inside. I have time on my hands in September and will be between tenants for a couple of weeks so was thinking of doing the painting myself.
So, assuming it takes me say 5 days to paint the house then can i allow say 5 x €120 = €600 (for the labour) off my gross rental income (plus cost of paint) ?

Cheers.

barneystinson

blast06 wrote: »

Hi,

Looking for some advice !
I have a rental property that is need of painting on the inside. I have time on my hands in September and will be between tenants for a couple of weeks so was thinking of doing the painting myself.
So, assuming it takes me say 5 days to paint the house then can i allow say 5 x €120 = €600 (for the labour) off my gross rental income (plus cost of paint) ?

Cheers.

God no.

Sure it hasn't cost you €600, why would you be allowed it as a cost?

AlanG

Officially you cannot allow your own labour as a cost for the property.

blast06

Thanks for the replies.
My thought process was that the €600 is the cost of my time. If not then i will be getting a painter in and getting a receipt (for probably a lot more than €600!) !

Incidentally, its a short term rental house (80% in summer months only) and so 'turnaround' between rentals is nearly always on a Saturday. It would typically take 5 hours to clean the house top to bottom (quite big) and launder and tumble dry all sheets and towels. I have for the past few years been putting in an allowance for this work (and an additional cost of travelling to the house) of €100 per time to offset against gross income. My accountant was happy with this approach. Based on your comments about painting, it would seem you would disagree with me being allowed to do this ?

Cheers

Jasper79

Agree with above , you can claim the materials but not your time.

barneystinson

blast06 wrote: »

Thanks for the replies.
My thought process was that the €600 is the cost of my time. If not then i will be getting a painter in and getting a receipt (for probably a lot more than €600!) !

Incidentally, its a short term rental house (80% in summer months only) and so 'turnaround' between rentals is nearly always on a Saturday. It would typically take 5 hours to clean the house top to bottom (quite big) and launder and tumble dry all sheets and towels. I have for the past few years been putting in an allowance for this work (and an additional cost of travelling to the house) of €100 per time to offset against gross income. My accountant was happy with this approach. Based on your comments about painting, it would seem you would disagree with me being allowed to do this ?

Cheers

What, €100 a week in made up costs?! Good luck defending that in an audit.

You might be able to justify the actual cost of petrol/diesel to/from the house, and a nominal amount for the laundering.

Suggest you consider changing accountant with advice like that. Short-term gain, long term pain.

highlandseoghan

I would be very careful running expenses through the books like that. Its fine at the minute but when you get audited is when the questions will be asked. I rent out a few properties and get them painted for €750 for interior and to be honest I much prefer paying the €750 getting a receipt and putting it through the books. Doing it your way sure you could decide to pay yourself €300 a day and get away with it, but as soon as your audited the trouble starts. Id strongly suggest just getting it done by a painter and getting a receipt.