tax treatment of new boiler in rental property
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deadlyduck
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Hate to muddy the waters (and I might be wrong) but my view is that the cost of the replacement boiler is capital expenditure [unless perhaps if the cost is immaterial] and that the tax deduction could only be claimed over a number of years rather than all at once 
As an analogy, if the asset in question was a replacement car, shouldn't it be treated as a capital addition with allowances spread over 8 years rather than a 1 year write off?
I'd suggest that the original poster might need to clarify this with his accountant for added assurance.
As an analogy, if the asset in question was a replacement car, shouldn't it be treated as a capital addition with allowances spread over 8 years rather than a 1 year write off?
I'd suggest that the original poster might need to clarify this with his accountant for added assurance.
Hate to muddy the waters (and I might be wrong) but my view is that the cost of the replacement boiler is capital expenditure [unless perhaps if the cost is immaterial] and that the tax deduction could only be claimed over a number of years rather than all at once
As an analogy, if the asset in question was a replacement car, shouldn't it be treated as a capital addition with allowances spread over 8 years rather than a 1 year write off?
I'd suggest that the original poster might need to clarify this with his accountant for added assurance.
Hi Deadlyduck,
In essence you are quite correct, but on a practical level, assuming its a firebird or some similar brand of boiler, the outlay would be in the region of €650 - €800 fitted so I think its easier to take the hit all in one year rather than €82 - €100 per year over 8 years.If the house has been previously rented and is being refurbished between lettings then the OP probably has other claimable expenses also so it comes down to the total amount of the expenditure and whether or not to go all in one year or down the line.
Great username by the way !
Regards
Westgolf
A new boiler would be a condensing gas boiler and I understand that the cost could be from €2000 upwards.
I have read the Revenue's guide to rental income but on this issue it isn't clear to me. At one point it mentions central heating as an example of wear and tear that can be claimed as an expense:
'Wear and Tear on furniture and fittings, e.g. carpets, cookers, central heating etc.'
In other part of the guide it gives a list of expenses that cannot be claimed and this list includes the following:
'Capital expenditure incurred on additions, alterations or improvements to the premises unless allowable under an Incentive scheme'
This could suggest that a new boiler is not deductible but this would not seem reasonable to me.
Any further clarifications would be appreciated.
I have read the Revenue's guide to rental income but on this issue it isn't clear to me. At one point it mentions central heating as an example of wear and tear that can be claimed as an expense:
'Wear and Tear on furniture and fittings, e.g. carpets, cookers, central heating etc.'
In other part of the guide it gives a list of expenses that cannot be claimed and this list includes the following:
'Capital expenditure incurred on additions, alterations or improvements to the premises unless allowable under an Incentive scheme'
This could suggest that a new boiler is not deductible but this would not seem reasonable to me.
Any further clarifications would be appreciated.
Noel
I have always advised that a central heating system is enhancement and should not be claimed as wear and tear (basically I'd treat anything that you cannot take with you as Enhancement)
However if you are replacing / repairing an existing system and not really enhancing the property value I would claim it in full as repairs
Others might disagree.
I have always advised that a central heating system is enhancement and should not be claimed as wear and tear (basically I'd treat anything that you cannot take with you as Enhancement)
However if you are replacing / repairing an existing system and not really enhancing the property value I would claim it in full as repairs
Others might disagree.