Good afternoon,
Hope you can help me!
I have rented my home to a HAP family and need to carry out repairs and improvements to the house. I want to add a bathroom to the main bedroom. There is currently one bathroom in the house which was sufficient when I lived at the house, now with seven people living in the house, a second bathroom is needed.
In addition the existing bathroom needs to be upgraded. There is a build-up of condensation on the walls and ceiling causing damp patches, water is running down the side of the bath into the living room below. I want to replace the bath with a shower unit, tank the walls to prevent water running into the sitting room. Add warm board to the external wall to prevent damp. Put in an extractor fan. Replace wall and floor tiles.
I have been given a quote of €8,400 for the repairs and upgrade. I am considering borrowing the money.
Q. 1. Am I right in thinking that the interest on the loan to carry out repairs and upgrade can be offset against my tax liability?
Q. 2. Is it the case that only repairs, can be claimed as expenses for the year in which they are undertaken and that costs for new ensuite bathroom and existing bathroom upgrade must be claimed as capital allowances over an 8 year period @ 12.5% each year?
I really appreciate your help and look forward to your response.
Hope you can help me!
I have rented my home to a HAP family and need to carry out repairs and improvements to the house. I want to add a bathroom to the main bedroom. There is currently one bathroom in the house which was sufficient when I lived at the house, now with seven people living in the house, a second bathroom is needed.
In addition the existing bathroom needs to be upgraded. There is a build-up of condensation on the walls and ceiling causing damp patches, water is running down the side of the bath into the living room below. I want to replace the bath with a shower unit, tank the walls to prevent water running into the sitting room. Add warm board to the external wall to prevent damp. Put in an extractor fan. Replace wall and floor tiles.
I have been given a quote of €8,400 for the repairs and upgrade. I am considering borrowing the money.
Q. 1. Am I right in thinking that the interest on the loan to carry out repairs and upgrade can be offset against my tax liability?
Q. 2. Is it the case that only repairs, can be claimed as expenses for the year in which they are undertaken and that costs for new ensuite bathroom and existing bathroom upgrade must be claimed as capital allowances over an 8 year period @ 12.5% each year?
I really appreciate your help and look forward to your response.