. Very helpful but I am trying to understand exactly where I include capital allowances (wear and tear) on the Form 12
I think there might be a few issues here...
You are not allowed to claim anything for pre-letting expenses except advertising the property. Anything you did before the property was let for the first time is not allowed as an expense, so €2.6k seems very high for 2 months. Are you including things that were done before the tenancy commenced?
The 18k includes "work done to the house". What sort of work? An extension or new bathroom for example is largely not allowed as they cannot be removed from the premises without causing significant damage, so these things simply benefit you in that they increase the attractiveness/value of the property but they cannot be claimed as an expense in a normal letting with no tax incentive scheme behind it.
You can only claim depreciation (wear and tear) on "plant" (furniture, carpets etc.) that can easily be removed from the property without damage to said property. You are allowed to assume a fair value for the existing furniture and go from there for 8 years (include 1/8 of the cost of all your "plant" as an allowable expense each year for the next 8 years, adding anything you buy new for the place in the meantime).
Capital allowances (unless you have a section x property or whatever) should all be left blank (correct me if I'm wrong please accountants! I have never had any capital allowances so can't speak from experience)
I'm always mystified by this pre-letting restriction. If someone buys a New house with the intention of letting it then surely a prospective tenant isn't expected to view a shell and "imagine" the carpet, washing machine, new tiling, beds, sofa, heating system, decor, fridge, microwave oven. etc etc.
The gas/oil/electricity must be connected before the house is let also.
Is a landlord expected to skip dive and get a load of ol' rubbish for the first letting , and when the deposit is paid get the good stuff?
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