These items will form part of your entry inventory. You need to create a detailed inventory of furniture, fixtures and fittings with the approximate value (at the first letting date) of the items listed. The total amount can the be deducted from your rental income at the rate of 12.5% per year over an 8 year period. Should you replace an item, say a suite of furniture in year 3, the remaining value of the suite can be written off in that year and the new suite must be added and accounted for at 12.5% again over 8 years.1. According to A Revenue Guide to Rental Income, "pre-letting expenses are non-deductable, "i.e. expenses incurred prior to the date on which the premises was first let." Are items I purchased in 2011, just prior to my first letting, deductable? (Mirrors, bathroom/kitchen/living room accessories and furniture, curtains,curtain poles, electrical appliances etc...deductable?
Same as above, check what you paid for them in 2006 and deduct 12.5% per year and use the balance as the current value. They may not be worth very much by this stage.2. Are items I purchased back in 2006 deductable? (Kitchen appliances, other accessories, bedroom furniture)? If so, how do I value them?
Expenses incurred in the period between lettings are deductible provided the landlord was not in occupation of the premises during the period and a new lease is granted.3. According to A Revenue Guide to Rental Income, "Expenditure incurred between lettings" are non deductable. Are repairs done between lettings are deductable?
Yes, just use the amount you paid for them and deduct at 12.5% over 8 years. The value must be realistic.4. Can I claim for items purchased second hand without receipts? (Bedroom furniture).
Same as above - write off the remaining value of the item you are replacing and put the new item on the inventory and deduct at 12.5% over 8 years.5. How do iI claim for future purchases? (e.g.furniture/electrical appliances/mirrors etc...?).
PRSI at 4% will now be payable from the tax year 2013 onwards by PAYE employees in receipt of secondary rental and other investment income.6. Am I liable for PRSI and universal social charge? If so how do I calculate this liability? Is based on gross, or net profit? If its based on net profit, is that before or after wear and tear expenses are deducted?
No7. Are my tenants able to claim rent relief?
There's a simple one here.I would love to see an example rent account.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?