Tax allowable expenses on a half occupied office building

Lauren1505

Hi,

In computing allowable expenses for the year on a half occupied office block, do I apportion the costs appropriately.

For example security costs were €20,000 for the year and the whole building was under surveillance, am I right in thinking that only the expense part that can be attributed to the occupied part is allowable, so €10,000 would be allowable and €10,000 disallowed for calculated the taxable income?


Thanks in advance
Lauren

Alan Shore

Is a trade deduction ie took on a bigger premises that currently using or a rental deduction ie preletting expense?

edward2222

The entire expense can be deducted from your taxes
in the same year that it was incurred – hence “current” expenses.

barneystinson

edward2222 wrote: »

The entire expense can be deducted from your taxes
in the same year that it was incurred – hence “current” expenses.

What's your basis for asserting that Edward? What provision of the tax legislation?

professore

Surely if the only option you had was to pay 20000 then it's allowable? By that logic if you are away on business and get a double room in a hotel you can only claim for 1/2 the room? Or claim 1/5 mileage allowance as your car seats 5?

Lauren1505

Hi,

Thank you for your replies.

This this the first year the office block was let out. 50% occupancy rate.

50% unoccupied and awaiting first time tenants. Some of the rooms are not in a condition to be let out (Need refurb work)

Am I right in thinking that half the cost of security is classed as a pre let expense and therefore disallowed proportionately.

But if I can show that a cost, say "lock and keys" that can be fully attributable as an expense to the occupied and let buildings only would be fully allowable?

Thanks
Lauren