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Property Impairment

  • 18-02-2017 3:31pm
    #1
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭


    Am I correct that an impairment for a capital item of property held for example as a manufacturing facility is not an allowable CT deduction?

    If an investment company with properties held for rental purposes suffers an impairment is this allowable as a CT deduction?


Comments

  • #2
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    Heisenburg81 wrote: »
    Am I correct that an impairment for a capital item of property held for example as a manufacturing facility is not an allowable CT deduction?

    If an investment company with properties held for rental purposes suffers an impairment is this allowable as a CT deduction?

    Correct, impairment is for audit/accounts purposes.

    Not a CT deduction.

    The adjustment is put through reserves...


  • #3
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    thegolfer wrote: »
    Correct, impairment is for audit/accounts purposes.

    Not a CT deduction.

    The adjustment is put through reserves...

    But allowable for the investment company?


  • #4
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    Heisenburg81 wrote: »
    But allowable for the investment company?

    Not allowable for the investment company, not a tax deduction..


  • #5
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    Where a company buys property in order to rent them out then the asset is a capital asset, the write down is not allowed for CT.

    If it is dealing in property then the reduction would be allowed, there is some anti avoidance around the allowability of the loss before the property is sold.


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