Landlord - Bad Tenant Expenses

jokerini

Registered User
Messages
91
John is a landlord who had an awful tenant who caused €60,000 worth of damage to the house e.g. kitchen and bathroom smashed, walls damaged, driveway wrecked, electric ruined....

Would the expenditure be considered capital (written off against eventual CGT) or expenses that can be written off against annual rental profits?
 
Get proper professional advice. There's too much money involved here to be depending on guesswork. Repairs that can be regarded as improvements may be regarded as capital but its a grey area at best and context is everything.
 
Wow, that's some damage. To me the fact the place was thrashed would seem that it's repairs. But for that amount of money you should ask your accountant. Even though the money is large, fixing damage when you break it down into each component piece may not be capital.

You have my sumpathies with that scenario, and I hope to goodness I never meet a tenant as bad as that. I hope you reported him to the Gardai.
 
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