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First-time landlord

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  • 09-03-2015 11:57pm
    #1
    Daz_
    Registered Users Posts: 930 ✭✭✭


    Hi folks .I am planning on letting my property for the first time at the start of April. I have done a good bit of reading up on the relevant sites including looking through threads here but I have one question that I would really appreciate clarity on:
    In relation to tax deductible expenses , their are costs such as alarm service and new living room and bedroom furniture that I am going to incur. However can I claim for this as it will be paid for before my first tenants lease?
    Thanks in advance boardies!


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    #2
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    The furniture you claim for as wear and tear, you can claim it over 8 years at 12.5% of value per year. The alarm service is a pre letting expense I'm afraid


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    #3
    Daz_
    Registered Users Posts: 930 ✭✭✭Daz_


    athtrasna wrote: »
    The furniture you claim for as wear and tear, you can claim it over 8 years at 12.5% of value per year. The alarm service is a pre letting expense I'm afraid

    Hi athtrasna, and how about the cost of the furniture? Is there any allowance for capital cost ? Thanks


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    #4
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    There's no capital allowance, you claim the value over 8 years at 12.5% as above


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    #5
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    People call the 12.5% a wear and tear allowance, I was taught it's called a capital allowance. Just sayin to identify where the confusion may have crept in.

    Deleted my subsequent post, not wanting to derail this with a semantic argument. I believe the wear and tear allowance is a mere type of capital allowance.


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    #6
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    http://www.revenue.ie/en/tax/it/leaflets/it70.html#section5
    Wear and Tear

    Wear and tear allowances are available in respect of capital expenditure incurred on fixtures and fittings (for example, furniture, kitchen appliances, etc) provided by a lessor for the purposes of furnishing rented residential accommodation. The allowances are available only where the expenditure is incurred wholly and exclusively in respect of a house used solely as a dwelling which is, or is to be, let as a furnished house on bona fide commercial terms on the open market. The rate of wear and tear depends on when the capital expenditure was incurred. For expenditure incurred on or after 4 December 2002 the allowance is 12.5% of the expenditure per annum for eight years.


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