Neil_Ireland
Registered User
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Hi all, newbie landlord question.
My ppr is rented, the dishwasher has broken. Can the cost of repair or cost of replacement be written of against tax?
Thanks
Can you clarify - I'm reading it that your former PPR is now rented out to another person.....is that correct ? (I'm assuming so as you said "newbie landlord")
If so, it is no longer your PRR (as I assume you have moved elsewhere) & you must have paid your NPPR tax in order to write of 75% mortgage interest.
Not having paid this will not affect your ability to claim for the dishwasher repair BUT will leave you exposed to late fees for non payment of the NPPR tax & the inability to claim on your interest - either of which will probably be far higher than the fee charged for NPPR.
I am not an accountant so if I've not been 100% accurate, maybe somebody else can clarify.
Thanks.
Both repair or replacement can be claimed?
plan on paying the €200 nppr tax when it opens for payment on the 31st of March.
Both can be claimed, but treatment depends on which it is (and whether or not you consider a dishwasher to be a capital asset).
If you spend money repairing an asset, that's an expense, allowable in full in the year you paid for the repair.
If you have to replace a capital asset on which you have been claiming acapital allowances, then two things actually happen:
Firstly, the obsolete asset has to be written down to zero (or it's scrap value), so you claim a balancing allowance.
Secondly, you will have bought a new asset to replace the old one, and you will be entitled to write the cost of this new one off over 8 years by way of capital allowances.
For example let's say you've got a dishwasher that cost you €320 two years ago. You'll be writing this cost off at 12.5% over 8 years, so that's €40 p.a., so it's carrying value is €240.
Say it breaks down tomorrow, and you pay €50 to get it repaired. That's an expense, allowable against your rental income (assuming you have a receipt!).
Now let's say it breaks down again next month, and isn't worth the cost of the repair. You bring it to the WEEE centre, and buy a new replacement dishwasher for €300.
You will be entitled to claim a balancing allowance of €240 (the amount of the original cost of €320 that you haven't yet claimed), and you will have a new asset at a cost of €360, which you will claim annual capital allowance of €45 against rental income.
I have recently had to buy a new suite and some other furniture for the house. Can any of the above expenses be deducted against tax in my 2012 return to Revenue?
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