Rental income - Capital expenditure / Wear and tear

fergie bxl

Filling in my 2014 return and I have made a large capital expenditure in that year - about 7,500 euro. Replaced radiators, boiler, sanitary wear, curtains, fridge freezer. The house is unfurnished (except for the kitchen appliances).

My question is can I apply the wear and tear allowance of 12.5 percent on these costs?

TIA for any advice. It wasn't clear to me on the information provided by revenue.

Q2. Am I liable for USC as a non- resident landlord?

newacc2015

My advice is get an accountant. For €200 a house on average(tax deductible), they will save you money. They will come up with tax deductible expenses you will never think of

riclad

From what i remember if you buy a fridge, cooker ,etc you can claim a
tax credit for the cost over 8 years,eg
400 euro cooker,=50 euro per tax year .
Look on revenue.ie ,for landlords tax credits fixtures and fittings etc
Get an accountant ,claim a tax credit for his fee.
so you claim the cost of all the large items over the next 8 years .

The_Conductor

Capital expenditure- on a replacement/like for like basis- is allowable in the year incurred. If the expenditure is not on a like for like replacement basis (for example- you've upgraded the windows from single glazed to double/triple glazed etc)- its not eligible at all. Upgrades to the property- are not allowable costs. Repair/replacement to a similar standard- is.

White goods- including boiler replacements/refrigerator/cookers/ etc etc- are depreciated on a flatline basis (12.5% per annum over 8 years).

sunnysoutheast

riclad wrote: »

From what i remember if you buy a fridge, cooker ,etc you can claim a
tax credit for the cost over 8 years,eg
400 euro cooker,=50 euro per tax year .
Look on revenue.ie ,for landlords tax credits fixtures and fittings etc
Get an accountant ,claim a tax credit for his fee.
so you claim the cost of all the large items over the next 8 years .

Just to say that these are not tax credits, it's an allowable deduction for the calculation of profit/loss which forms the taxable income from the rental activity.

sunnysoutheast

fergie bxl wrote: »

Filling in my 2014 return and I have made a large capital expenditure in that year - about 7,500 euro. Replaced radiators, boiler, sanitary wear, curtains, fridge freezer. The house is unfurnished (except for the kitchen appliances).

My question is can I apply the wear and tear allowance of 12.5 percent on these costs?

TIA for any advice. It wasn't clear to me on the information provided by revenue.

Q2. Am I liable for USC as a non- resident landlord?

The whole area of depreciation on F&F is somewhat vague. The general rule of thumb seems to be that, if something can be removed and reused, it can be claimed. So boiler/rads yes, pipework no, Light fittings yes, wiring no. Rugs yes, carpets no. I've never seen a definitive list anywhere.

I believe capital improvements - not allowable - can be set off against CGT on disposal.

Yes you will be liable for USC. Note that the depreciation on F&F and any losses carried forward are not considered when calculating USC due.

If you have replaced items which have not yet been fully depreciated it may be worth asking an accountant how best to treat these.

Good luck.