Hey all.
I'm one of many of the reluctant landlords out there. Left my negative equity home in 2011 to rent it and make a small loss each year. I've also been completing my own Form 12 returns each year.
I submitted my 2013 return last week and have now been contacted by Revenue seeking a breakdown of the Wear and Tear figures I've been using and looking for receipts etc. I'm in the position that I had furnished the house while living there and do not have receipts. I had done extensive reading before completing my first Form 12 and the majority seemed to say that you could use pre-letting expenses (furniture and fittings), once they were fairly and reasonably costed at their current value, not their purchase price (which may have been a few years previously). So that's what I did. I valued all contents at €13,000, spread over 8 years (12.5%) per annum, 2011 - 2018. Does this sound high? It's only a 2 bedroom house, although there are 3 bathrooms. An example and a big ticket item, for example would be mirrored sliderobes in master bedroom, which I valued at €1750, even though I paid well over €2000 a few years previously. Should I have gone lower? I've read various opinions on this so I'm not expecting an answer as such. I don't know what I'm expecting really, just some sort of 'there, there, it'll be okay' I guess
Yes, I'm panicking a bit...
Anyway, the lady who contacted me seems to have taken issue with this and is adamant that I cannot put a value on pre-letting expenses. Although she said she needs to 'look into it more'. I don't think she's particularly au fait with what to do with me, being honest. I'm now bricking it that I'm going to be faced with a huge bill, which I frankly cannot pay. I'm in the process of sending her in a list of contents, with their values attached and attaching a cover letter. I've explained in this letter that the values I've attached were fair and reasonable and based on their value at time of rental, not what I actually paid for them. As this is what I did.
Oh and to top it all off, I bought an item in the current year (2013), I know the exact date and where I bought it, but can't find the b#@@#y receipt. Of course, in my stupidity, I've claimed for it anyway. And now I need to furnish receipts. What to do???
So, do I play it cool for now or plead my case from the offset in this covering letter? Or is there any point at all? Am I just screw-balled? Anyone ever been in this position? If I'm met with a huge bill, how the hell do they expect me to pay it? I'm heading back to education in 2 weeks.
And finally, anyone want to buy a house? Thanks for reading. Any and all advice is welcome.