Cremeegg are you speaking from personal experience with revenue or your own interpretation of the rules?
The rules quite clearly require that you have invoices for every item, (the precise requirements for an invoice to be acceptable are very detailed, many shop receipts and certainly credit card slips, would not qualify).
When I had a Revenue audit, this was not raised as an issue.
The rules aren't clear at all. Yes, receipts/supporting docs are required to be kept for 6 years. However, there is no clear guidance on the revenue website or elsewhere specific to cap allowances and the requirement to hold onto receipts for all purchases of same. Unless you can point me to where it is.
It seems to be ok to just use an estimate and nothing will become of it. so its open season.
The rules aren't clear at all. Yes, receipts/supporting docs are required to be kept for 6 years. However, there is no clear guidance on the revenue website or elsewhere specific to cap allowances and the requirement to hold onto receipts for all purchases of same. Unless you can point me to where it is.
It seems to be ok to just use an estimate and nothing will become of it. so its open season.
Funny M, wow, 300 hundred saving on an overvalue by 5 k. I'll put the settee set in as leather worth 10k!!.The "rules" aren't unclear at all. Tax rules are called legislation, and the legislation requires that such records be kept as will enable a person to make a true return. (Section 886 of the Taxes Consolidation Act 1997.) What may be sufficient in one taxpayer's case may not be in another's, due to the relative complexity / simplicity of each person's business or affairs.
In the case of a reluctant LL, nobody could reasonably expect that they would have known of the need to retain all the reciepts for their furniture and white goods, in case they later became a LL, so it is entirely reasonable that they would have to estimate the value of these items for wear & tear purposes. If the value isn't off the wall, there'll be no issues if Revenue come looking.
If you're a long term and/or multi-property professional LL, you should have the receipts to evidence your claims.
Hardly. I think you need to get some perspective. If you overstate the value of the stuff in a property by €5k, you'll be claiming an additional €625 in wear & tear annually, and saving a whopping €300 or so on your tax bill. That has to be the outward limit of what you would be likely to get away with, and beyond it in some cases.
But yet still there is zero clarity whatsoever from the revenue on whtehr or not receipts are required for cap allowance claims. They either are or are not. Which is it and where is the revenue guidance on it? There is none. Apart from the general 6 yr rule re keeping receipts.
It seems you can make cap allow claims with not a receipt in sight. Yet the revenue says keep receiots for 6 yrs in case we audit you. What should people do then? There is no clarity on this point. There is interpretation and use of reasonable logic but that is all.
torblednam i think you linked the wrong section of the act.
Nowhere in sec 886 does it reference what you have spelled out above aoart from the 6 yr rule which is not what i am disputing. You are right when you say "it requires you to keep receiots" but thats it. There is nowhere where it says "such as you see as sufficient".
I agree with you that there is prob no absolutes in an area like this....which is why im saying its a tad ambiguous.
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