Rental Income Computation

G

geri

Registered User
Messages
295
I am preparing my first rental income computation for the revenue (2004). I contacted the inspector of taxes, and recently recieved a letter back from him requesting a computation of rental income. I am a paye worker, and have no other un-taxed income other than the rental income. Is a letter outlining the details sufficient, or do I also need to fill out a form 12?

Details of the account are as follows

Gross Rent Recieved 6000
Interest on Mortgage 4597.82
Insurance 420.46
Repairs 1019.00
Income before capital allowances -37.28
Capital Deprectation 1000.00
Rental Income loss of 1037.28.
I have the paperwork to support all of these figures
Any comments appreciated.
 
I'm not sure about the repairs or capital allowances you refer to

Repairs prior to first letting are generally not allowed. See page 3 & 5 of attached [broken link removed].
Not sure how this works if a lot of repairs are required prior to a first letting (be careful)

What are the capital allowances you refer to? This could be an interseting point
 
The repairs are some refurbishments we made to the house after the tennants moved in. painting, floor repair etc. We bought the house in July, and had tennants move in in August. Repairs were carried out after the tennents moved in. Capital Allowances refer to wear and tear on fixtures and fittings in the house, as referred to in the revenues guide to rental income, i.e 12.5 percent of value of furniture and fittings. We bought beds, white goods, tables, suite, bedsidelockers, etc. Am I missing something here?

Also, in my original post, I asked the question whether a letter outlining all details is sufficient to submitt to the revenue. Any advice on this?
Thanks.
 
thanks for that geri. going to fill out the form12 this week so if you have anything else unusual please let me know
 
I have a problem with the repairs necessary to get a property ready for rental not being tax deductable .
How about if the house is not in good condition then should the repairs necessary be allowed ?
Tenants should get a house that is in good condition and as rental units are becoming more readily available the standard has to become higher.
Slumlords should not be allowed to exist in this day and age .

I am a landlord by the way and i keep all my properties in good condition , i have had at least 4 tenants ask could they purchase the property from me over the years

mikeyny
 
mikeyny said:
I have a problem with the repairs necessary to get a property ready for rental not being tax deductable .
Click to expand...
AFAIK Mike, repairs and improvements to the property prior to the first letting can be deducted from any Capital Gains Tax payable on the eventual sale of the property, provided you keep the receipts etc.

"The allowable expenditure may include:

- The cost of acquisition of the property and any costs of acquisition such as solicitors / auctioneers fees;

- Any costs incurred in improving the value of the property;

- Any costs of disposal such as solicitors / auctioneers fees."
 
A property was let last March, prior to that it had been a ppr for the individual concerned. As far as capital allowances are concerned, is she allowed to make an inventory of all the Fixtures and fittings prior to the first letting and assign a realistic value to them for capital allowance purposes?
 
Just make an inventory of the fixtures and fittings and 'guesstimate' their values as at the date of the first letting. There's no need to root out original invoices - your best estimate will do.

Once the estimate used is fair and reasonable, there should be no problem.
 
As long as what you are claiming is reasonable, Revenue will not want receipts or anything like that. I have never got a query from them on my expense claims.
 
You must log in or register to reply here.
Back
Top