Buy to let unfurnished implications of fully furnishing before letting

[Sharky]

Thanks in advance for any advice.

I have just purchased a 3 bed semi to rent out which is completely unfurnished.

Before renting it out what are the tax implications of fitting it out with white goods, beds, tables, sofas etc and improving the energy rating with greater insulation inside and out etc?

 

[facetious]

I believe, but stand to be corrected, that for all those items you have to buy, they can be written off over 8 years. The property itself is a capital expenditure and if and when sold would be liable to Capital Gains Tax (if it is sold at a profit).

Obviously, even if you let the house as "unfurnished", for which there may be an increasing market, you still have to comply with the Minimum Standards for Private Rented Accommodation.

An accountant would be the best person to advise you as there may be other tax breaks available or ways to minimize your costs and tax liabilities.

 

[Bronte]

Yes, all can be written off over 8 years at 12.5% per year under 'wear & tear'. The insulation I've no idea about. But it sounds like 'capital' to me. And if it is allowable under rental, I'd imagine it should be done 'after' first lettting not 'before' as there are specific rules about what is allowable for first lettings.

 

[Sharky]

Thank you both for responding.

So any money spent furnishing the house can be recouped but over 8 years.

What if you sell the property after 4 yrs?

Are there any other tips or tricks to minimise your tax liability with an investment property.

 

[facetious]

Thank you both for responding.

So any money spent furnishing the house can be recouped but over 8 years.

What if you sell the property after 4 yrs?

Are there any other tips or tricks to minimise your tax liability with an investment property.

That's why it's a good idea to talk to an accountant whose bill cam be fully set against taxes.

 

[Bronte]

What if you sell the property after 4 yrs?

Are there any other tips or tricks to minimise your tax liability with an investment property.

Are you planning on selling after 4 years?

If you are you can sell the furniture then can't you. As for tips and tricks, why don't you give us your figures and we will see, but now you've already bought it's a bit late for tips and tricks?

First tip, hire an accountant.
Second tip, read revenue.ie
Third tip, read the many many threads on here