Replacing window & doors on rental

[Logo]

I recently replaced the windows and doors on a rental property. After talking to the accountant I was informed that these costly replacements are not tax reducing for rental income purposes. Is this correct? TIA

 

[Paul O Mahoney]

I recently replaced the windows and doors on a rental property. After talking to the accountant I was informed that these costly replacements are not tax reducing for rental income purposes. Is this correct? TIA

I would have thought that they would be capital expenditure and written off over 8 years. Writing them off in one year wouldn't be allowed by Revenue.

 

[Logo]

I would have thought that they would be capital expenditure and written off over 8 years. Writing them off in one year wouldn't be allowed by Revenue.

That's how I thought too. Accountant did ask about a like-for-like replacement if that makes any difference..they replaced windows & doors from 20+ years and expect that triple glazing wasn't available then.

 

[Baby boomer]

Would it not be regarded as a repair rather than a capital cost? And thus allowable as an expense for the year in which the job was done.

Analogy: suppose the roof leaked and a section had to be replaced.....

 

[Paul O Mahoney]

I'm not a tax expert but I would imagine that this is " enhancing " the asset and making it more valuable and is " capital expenditure ".

Perhaps Revenue might give guidance.

 

[Paul O Mahoney]

Would it not be regarded as a repair rather than a capital cost? And thus allowable as an expense for the year in which the job was done.

Analogy: suppose the roof leaked and a section had to be replaced.....

Revenue seem very slow to allow large expenditure as simply maintenance/repair.

We had a large bill for fixing up a rental, painting, usual stuff and they asked for details and they agreed it was maintenance after the tenant wrecked the place, but we didn't replace anything.

Replaced a boiler 6 years ago and it was capital expenditure.