How to treat wear and tear items that you replace

B

Brewster

Registered User
Messages
12
Hi folks, for the purposes of a rental property I set my wear and tear at the beginning of the tenancy. It was my family home so I was estimated the value of some things, on low side. I know I don’t have receipts but I think this aspect will be ok. Take carpets and wooden flooring, and I depreciate their value of 1000 euro over 8 years. I replace some of them after 3 years and it cost me 900. Do I indicate that 300 worth of carpets were replaced, leaving 700 of original outlay. I then add the 900 to the 700 giving me 1600. I depreciate the remaining initial value over 5 years and the 900 new value carpet over 8 years? Thanks
 
No

What I would do is depreciate 125 every year for 8 years

Then on year 3 you have a once off expense of 900
 
I
moneymakeover said:
No

What I would do is depreciate 125 every year for 8 years

Then on year 3 you have a once off expense of 900
Click to expand...
And are you indicating that you’d write off the full 900 in one year? It hasn’t been an issue up to now, as I didn’t replace anything. However, tenants left and I had to replace some things, now I’ve replaced some carpets in the house, I don’t know how to treat them on the excel spreadsheet. I am sure this just be a very common thing for a landlord, I’d be Interested to hear how others go about it. Surely you can’t depreciate an item that is removed from house??
 
One other issue, in between my last four year letting, and letting the house again in January 2020, I am occupying the house as my PPR. Receipts for new flooring are dated now, the tenancy ended in August.
 
Brewster said:
Hi folks, for the purposes of a rental property I set my wear and tear at the beginning of the tenancy. It was my family home so I was estimated the value of some things, on low side. I know I don’t have receipts but I think this aspect will be ok. Take carpets and wooden flooring, and I depreciate their value of 1000 euro over 8 years. I replace some of them after 3 years and it cost me 900. Do I indicate that 300 worth of carpets were replaced, leaving 700 of original outlay. I then add the 900 to the 700 giving me 1600. I depreciate the remaining initial value over 5 years and the 900 new value carpet over 8 years? Thanks
Click to expand...
Personally, I would continue to w/o the original carpets at 125/year till the 8 year term was up and 112.50 per year for the new flooring for a further 8 years.

The correct way to do it would be to w/o the 300 value replaced in the year of replacement, and w/o the balance of 87.50 over the remaining 5 years (original value 1000 less 300 w/o, = 700/8), along with the 900 over 8 years.
 
Thanks Nutso. I think the correct way you were proposing is similar to what I had planned to do? I wasn’t planning to write off the 300 in the year in question as the expense has happened recently when I was living in the house and the tenants weren’t there. I think I can only claim them as wear and tear item receipted item. I’ve two choices, I can ignore it and continue to write off the full 1000 over 8 years or I can deduct the nominal estimated value of the replaced carpets and add the new 900 for 8 years and have 700 value depreciated over 5 years.
 
So in 2015 I allocated a value to each room in the house. I only had receipts for one room. I replaced two rooms two weeks ago and this was a notional Value of 300 out of total for flooring wear and tear of 1000. I know it’s very subjective, but at least I showed some thought!
 
You must log in or register to reply here.
Back
Top