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Bore well, Farm and residential usage

  • 06-09-2022 8:50am
    Registered Users Posts: 672 ✭✭✭


    Bored a new well last year which will service house and farm. In relation to revenue what way do I deal with it.

    Can I claim the Vat back. Guessing not as its not only 50% farm use.

    So do I then apportion off 50% the cost of boring the well as a farm expense or do I treat it as a capital item and apportion off 12.5% of 50% of the cost over 8 years.



  • Registered Users Posts: 3,095 ✭✭✭Siamsa Sessions

    Check with an accountant to be sure.

    But my 2-cents...

    I think both options are possible from Revenue point-of-view, so it just depends on what suits you best. You can get the quick tax benefit now or you can get the slower tax benefit over 8 years.

    But check with an accountant, rather than some lad who said it OK on the internet.

    Trading as Sullivan’s Farm on YouTube

  • Registered Users Posts: 1,268 ✭✭✭mr.stonewall

    The key to this will be the location of the well. If it's on the site of the house it will be trickier as it the cap ex is associated with the house if it was sold in the morning.

    If the well is located on farm land it is easier as the the cap ex is on the farm with a small % associated (25%) to the house.

    The best way is to find out the rough usage of farm and house and have a chat with you accountant.

  • Registered Users Posts: 672 ✭✭✭foxirl

    Thanks for the replies. Only part time farming at a very small scale so no accountant. Have been doing my own returns every year.

    Think trying to get the vat back as the well is on house site might be pushing it so will apportion a percentage off as an expense against the farm.