Capital Allowances after Sale of Property

dovest

Registered User
Messages
28
Hello AAM members,

I have a small number of apartments which I rent out.
Each time I buy a replacement appliance for one of the properties (e.g. a washer/Dryer), I write down the cost against tax over 8 years.

I recently sold an apartment which still had approximately €1,000 of capital allowances unused (I had replacaed several appliances recently).
I made no capital gain on the sale of the apartment as I had bought it during the Celtic Tiger when prices were high.

I feel I should be able to write off the final €1000 of capital allowances this year against income from the other apartments which I still hold.
My accountant says no: He says you just lose the tax relief.

Is he right?
 
What happened to the appliances with the remaining capital allowances.

If you sold them for more than €1,000 you should pay tax on the profit on disposal
If you sold them for less than €1,000 you have a capital loss.
If you still have them you can claim the capital allowance, if you have income to set it against.

Of course there may be more involved.
 
Thanks cremeegg, actually I just left the new kitchen appliances in the apartment when I sold it.
They were not separately itemised, nor was their value identified in the contract of sale.
 
Thanks cremeegg, actually I just left the new kitchen appliances in the apartment when I sold it.
They were not separately itemised, nor was their value identified in the contract of sale.
Could you have moved the appliances to your other rented properties and used up the capital allowances that way?
 
Back
Top