Rental income tax returns

mccarthy.087

hi all,

I have a query regarding tax returns on an apartment. I bought and furnished an apartment in 2006 and last year I had to move to other side of country for work so had to rent it out.
Now I'm starting to prepare all my info for a tax return before end of October. I am fairly upto date with everything except I have a question regarding wear & tear on fixture & fittings and how do I put a value on same. I obviously had the apartment fully furnished before renting it out so am I entitled to include these fixture and fittings and just itemise and estimate a value on same and take 12.5% of the value I have given. Obviously I have no receipts of purchase as they were all bought over the last 10 years or so.
What I am asking is if for example I took an estimate that fixture and fittings were €10,000 and took 12.5% of that as €1250 will revenue look for proof of purchase or just an itemised list of the items?

adrianw

General rule is no deduction allowed. However some may argue that the furniture has been appropriated from personal use to rental use.

However, if you bought furniture, fixtures and fittings in 2006 totaling €10,000 it may be worth €1,000 in 2014. so 12.5% of this being €125 a year MAY be allowed as a capital deduction.

mccarthy.087

Hi and thanks for your reply. Just quickly do you think revenue will look to see proof of purchase of fixture and fittings I bought over a number of years or will they accept an estimate total value from me?

adrianw wrote: »

General rule is no deduction allowed. However some may argue that the furniture has been appropriated from personal use to rental use.

However, if you bought furniture, fixtures and fittings in 2006 totaling €10,000 it may be worth €1,000 in 2014. so 12.5% of this being €125 a year MAY be allowed as a capital deduction.

mccarthy.087

Hi and thanks for your reply. Just quickly do you think revenue will look to see proof of purchase of fixture and fittings I bought over a number of years or will they accept an estimate total value from me?

adrianw wrote: »

General rule is no deduction allowed. However some may argue that the furniture has been appropriated from personal use to rental use.

However, if you bought furniture, fixtures and fittings in 2006 totaling €10,000 it may be worth €1,000 in 2014. so 12.5% of this being €125 a year MAY be allowed as a capital deduction.

adrianw

It would be unusual for Revenue to seek evidence if the expenditure is 'normal'.

If you claim an unusually large capital allowance they may, but in most cases they will not. But if the expenditure is legitimate i assume there is a credit card / cheque record which should suffice.