I’m fine on the rental income and expenses calculations but a little fuzzy on how capital allowances (CAs) work apart from being able to use 12.5% each year over 8 years, specifically in relation to unused CAs. I’d really appreciate a steer.
Should capital allowances (CAs) be used to bring myself into a paper loss situation each year?
If so, can this paper loss be carried forward?
At the end of each year, will the CAs unused be lost?
If not, at the end of Year 8, will the unused CAs be lost?
The CAs I'm talking about relate to general capital expenditure (wear and tear) on furniture, white goods etc.
What if my profit is only €5 in a given year yet I have €12.50 CA from my toaster - what happens to the remaining €7.50? Can I carry it for infinity until I have a profit to utilise it against?
What if my profit is only €5 in a given year yet I have €12.50 CA from my toaster - what happens to the remaining €7.50? Can I carry it for infinity until I have a profit to utilise it against?
One more quick one, can the wear and tear allowance that is unused on one property be used to reduce the taxable rental profit on another property or are the allowances property specific? Both owned by the same investor.
One more quick one, can the wear and tear allowance that is unused on one property be used to reduce the taxable rental profit on another property or are the allowances property specific?
One more quick one, can the wear and tear allowance that is unused on one property be used to reduce the taxable rental profit on another property or are the allowances property specific? Both owned by the same investor.