A mate is living in my property at moment - rent free for 2 months - I will shortly install a new bathroom - should i wait until market rent is being paid so I can offset the cost of the bathroom on rental income liability? Is there a minimum rent I can charge to avail of same this year instead of giving the house rent free for the next two months?
Tax deductable items on rental property
- Thread starter Lone Star
- Start date
The capital cost of the new bathroom fittings and furnitures is not deductible as such from rental income. It would not be considered a repair or maintenance expense.
You get a capital allowance equal to 12.5% (1/8th) of the cost every year for 8 years - this is deductible.
You get a capital allowance equal to 12.5% (1/8th) of the cost every year for 8 years - this is deductible.
deadlyduck
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If you are both living in your principal private residence (your main home), don't forget that the rent a room relief is possible which would potentially completely exempt the income from tax (renatl income cap applies for exemption to be available):
www.citizensinformation.ie
Rent a room tax relief scheme
Rent-a-room relief makes it possible to earn tax-free rental income when you rent out a room in your home to private tenants.
JPD - I had the same scenario on my BTL a couple of years ago. Response to query from revenue was to consider bathroom replacement as repair and set against income. I has assumed same as you that it would be capital allowance and have kept the correspondence in case of future challenge
Paul O Mahoney
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I had a similar situation with installation of a new boiler and it wasn't cheap, they told me to expense it as "repairs and maintenance " I didn't ask twice and like you kept a record of the conversation.