12.5% Wear & Tear - does it cover appliances?

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csirl

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A couple of questions from a relative who's a reluctant new landlord, but not an AAM member:

12.5% Wear & Tear allowance.

1. This clearly applies to furniture. If e.g. a 3 piece suite was purchased 3 years ago (before landlord knew would be renting), do you write off 12.5% of the original purchase price OR 12.5% of the estimated 'second hand' price at time of renting. [logic suggests its 12.5% of purchase price -its just that the item has a shorter expected lifespan remaining and will have to be replaced sooner?].

2. Does it apply to appliances e.g. washing machine? Or are they just receipted expenses at the time of replacement?

3. Does it apply to fitted carpets? Or are they just receipted expenses at the time of replacement?

4. If an item for which the 12.5% is being claimed needs to be replaced during the tenancy, does the landlord simply purchase a new item of similar purchase price (when new) and continue to write off 12.5% per annum rather than writing off the receipted cost of replacing?

Mileage T&S

I understand you are allowed to write off any mileage incurred when visiting a rental property if you live a long way away. Is the write off at the full mileage rate or the reduced rate? How many journeys per month/year would be considered reasonable e.g would one visit per week be seen as reasonable or one visit per month?
 
csirl said:
A couple of questions from a relative who's a reluctant new landlord, but not an AAM member:

12.5% Wear & Tear allowance.

1. This clearly applies to furniture. If e.g. a 3 piece suite was purchased 3 years ago (before landlord knew would be renting), do you write off 12.5% of the original purchase price OR 12.5% of the estimated 'second hand' price at time of renting. [logic suggests its 12.5% of purchase price -its just that the item has a shorter expected lifespan remaining and will have to be replaced sooner?].

2. Does it apply to appliances e.g. washing machine? Or are they just receipted expenses at the time of replacement?

3. Does it apply to fitted carpets? Or are they just receipted expenses at the time of replacement?

4. If an item for which the 12.5% is being claimed needs to be replaced during the tenancy, does the landlord simply purchase a new item of similar purchase price (when new) and continue to write off 12.5% per annum rather than writing off the receipted cost of replacing?

Mileage T&S

I understand you are allowed to write off any mileage incurred when visiting a rental property if you live a long way away. Is the write off at the full mileage rate or the reduced rate? How many journeys per month/year would be considered reasonable e.g would one visit per week be seen as reasonable or one visit per month?
Click to expand...


Questions I would be interested hearing the answers to

Another question.

Do you need receipts for all fitures and fittings or do you just give an estimation of costs in year one?
 
12.5% Wear & Tear allowance.

1. This clearly applies to furniture. If e.g. a 3 piece suite was purchased 3 years ago (before landlord knew would be renting), do you write off 12.5% of the original purchase price OR 12.5% of the estimated 'second hand' price at time of renting. [logic suggests its 12.5% of purchase price -its just that the item has a shorter expected lifespan remaining and will have to be replaced sooner?].
12.5% p.a. of the Original Cost of the items, over 8 years from date of purchase. So if they were bought 3 years ago, then they have 5 years left to be written off against rental income.

2. Does it apply to appliances e.g. washing machine? Or are they just receipted expenses at the time of replacement?
Yes, it applies to appliances also. As a rule of thumb I'd say use a couple of hundred quid as a cut-off, if an item is less than that no-one will query it being expensed.

3. Does it apply to fitted carpets? Or are they just receipted expenses at the time of replacement?
Yes, also applies to carpets (per IT70 on Revenue website).

4. If an item for which the 12.5% is being claimed needs to be replaced during the tenancy, does the landlord simply purchase a new item of similar purchase price (when new) and continue to write off 12.5% per annum rather than writing off the receipted cost of replacing?
If an item needs to be replaced, assuming it is thrown out then the remaining balance of the original cost that has yet to be written off, is claimed in the current year (as a "balancing allowance"). You then start claiming 12.5% p.a. on the new item purchased to replace the old one.
e.g. 3 piece suite cost €1k 4 years ago, been written off at €125 p.a. each year, so there is €500 left to be written off. You buy a new suite for €800, and throw out the old one. So against this year's rental income you will claim the balance of €500 on the old suite, and €100 (12.5% x €800) on the new suite.


Mileage T&S

I understand you are allowed to write off any mileage incurred when visiting a rental property if you live a long way away. Is the write off at the full mileage rate or the reduced rate? How many journeys per month/year would be considered reasonable e.g would one visit per week be seen as reasonable or one visit per month?[/QUOTE]
Not sure where you got this information but AFAIK you can't claim mileage / T&S against rental income. You certainly can't claim mileage, the most you could/should claim for would be €20 of petrol/diesel a couple of times a year for the purpose of carrying out maintenance at the property. This was discussed here previously: http://www.askaboutmoney.com/showthread.php?t=154419
 
My daughters LL supplied old second had electric appliances, and claimed back for the microwave out of the deposit because it broke, the rogue.
 
wouldn't see a problem with that unless he claimed back more then it was worth!
 
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