Residential Property vs Commercial property in ROS

Calahonda52

Just taken over doing tax returns from an accountant for a friend.
Am using ROS
Pre-filled form shows a ground floor premises let to a hairdresser treated as a residential property on ROS.

Should i change this?
The tenant has fully furnished the unit so no CA's
Thanks as always

Stratvs

That’s a problem with repopulated returns. ROS split I think in 2015 to showing residential and commercial separately where before that was all one heading. So if someone had commercial in before it could end up in wrong place after the split. I think ROS issued a bulletin warning this could happen. I’d clear the residen tial fields and complete the commercial fields.

The repopulated return you have now comes from 2016 entries so I wonder if the 2016 return had erroneously left the commercial in residential and that’s why you’re seeing it there now.

Calahonda52

Thank you very much for this insight
Can I download 2016 from inside ROS?

Stratvs

If you are using an agents ROS interface then go to the client name. Then select client services and you'll see a heading on bottom right "Download prepopulated returns" then on next screen you have option for Income Tax - Form 11 - taxpayer name click "go" & you get a list of years you can download.

Stratvs

What would be helpful is if you had a copy of the actual Form 11 for 2016. Maybe your friend has a copy from their previous agent.

Calahonda52

Thanks, am downloading the pre-pop for 2016.
No F!1 made available to my friend

PS, property was in commercial in 2016 so happy days: it also did not copy across the correct amounts: 250 in 2016 became 750 in 2017 pre pop

Calahonda52

My guess is no, we had ESB connection in 2018 to create an apt, so I guess I just add it to the cost base when selling.
Thanks as always

Stratvs

Calahonda52 wrote: »

My guess is no, we had ESB connection in 2018 to create an apt, so I guess I just add it to the cost base when selling.
Thanks as always

It wasn’t “in the course of a letting” so wouldn’t be repairs/maintenance against letting income. It was to enable the asset to be put in use. So I’d consider that enhancement expenditure and add to base cost for any future disposal.

There is the relief for up to €5k expenditure pre letting on vacant properties which are subsequently rented but since it’s expenditure in the creation of something new it wouldn’t likely qualify under that.

Calahonda52

Thanks, its being sold anyway, once the bank find the deeds

Stratvs

Calahonda52 wrote: »

Thanks, its being sold anyway, once the bank find the deeds

Ahh that old chestnut. Been there, done that, wore out the tee shirt. “Well they were originally in branch, err then they were centralized then err your solicitor lost them (oh no he didn’t) then then then...”

Hope you get sorted.