What a ridiculous comment!Except for the dishwasher everything is repair/replacement. Clear as day to me. Take pictures. And get a better accountant.
The "goal" of the refurb is irrelevant.The goal of the refurb, as I understand it is to renovate the property.
Because the accountant obviously took the view that a large proportion of the expenditure constituted capital improvement/en_hancement.Why did the accountant suggest leaving it til property sold ?
No, it’s up to your relative to keep receipts, etc.Is the potential future CGT portion recorded somewhere with revenue or are you relying on the accountant to have the breakdown of costs on record 20 years down the road if he decides to sell up ?
What a ridiculous comment!
How could you possibly know whether many of those expenses constitute repairs as opposed to improvements?
The accountant presumably has the full facts - you definitely don’t.
And in what universe do new curtains and mattresses constitute repairs!
Exactly MMO. That's why when I first bought a propety for x, put in y to bring it to value z, that's enhancement. Clearly CGT. Couldn't see any other way of viewing it. But later, as you do, you have to replace/renew/renovate, that's not enhancement. It's renovation. Us landlords are doing this constantly. Sometimes it's just a paint job, a replacment boiler, a new electic shower, but other times it's a major renovation. Which is what the OP has because she said it had been rented for 'many years'.I agree with Bronte. Entire amount should be tax deductable.
The goal of the refurb, as I understand it is to renovate the property.
Now if the purpose was to turn a 300k property into a 1m property that not allowed.
Eg I buy single unit. Add on 5 more units. Try to claim relief on the construction of 5 as rental relief.
From Revenue website,
Not Allowed:
capital expenses on property improvements unless allowed under an incentive scheme
But my understanding what the OP is describing is not so much improvement but renovation. Upkeep. Otherwise rented properties would become slums.
I think Revenue Commissioners and government want rented properties to be maintained. And thus the relief on refurbishment.
As I already said to you, you friend needs a better accountant. Especially now you've told us about him forgetting to claim something ! Like there's alarm bells twice now. Anyone can forget something, it happens to the best of us, but 'several years'. Do you know how much the accountant is paid?Ok. So you guys basically think that most of this expense should have been allowed in 2017. Why did the accountant suggest leaving it til property sold ? Everything was renovation. Paint, flooring throughout. New kitchen doors and worktop. New bathrooms throughout. New electric shower. New carpets, beds mattresses, curtains, curtain poles etc. Is there any point in following it up at this stage ? Why would he have allowed so little? It seemed odd at the time but he uses this accountant every year. He thought about it again this year as accountant had forgotten to claim several years of tax relief on a income protection plan despite having been asked about it years ago. Is it possible to get a second opinion on that years return ?
There is a revenue expert on the other thread. Mandelbrot.I have read through the other thread linked above and it seems a controversial topic. The majority of the works would have been classified as renovations for wear and tear. I assume new kitchen appliances would be capital allowances. I suppose attic insulation or an electric shower in an ensuite would be an ***********. But those were small cost items in light of the overall expenditure. He has no recourse now anyway - I presume. Is the potential future CGT portion recorded somewhere with revenue or are you relying on the accountant to have the breakdown of costs on record 20 years down the road if he decides to sell up ?
My advice is not wild. It's factual and based on vast experience and knowledge.I'm afraid some other posters are offering you some pretty wild advice. It happens.
I respectfully disagree.My advice is not wild. It's factual and based on vast experience and knowledge.
I didn’t make any such decision.Tell me Sarenco how did you decide a 50 Euro set of replacement curtains is 'improvements'?
And in what universe do new curtains and mattresses constitute repairs!
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