Capital Allowance - Rental income

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BAsh

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Can anyone tell me how I compute my capital allowance on rental income on Form 11? From the information I can gather I can write down the value of my furniture every year?
 
BAsh said:
Can anyone tell me how I compute my capital allowance on rental income on Form 11? From the information I can gather I can write down the value of my furniture every year?
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12.5% per year for 8 years (e.g. couch cost €800, therefore claim a deduction of €100 a year for 8 years).
 
re pat bateman post; Is this correct - I would have though the amount on which one is claiming is reducing each year so therefore the 12.5% gives a different amount each year? is this so? does one fill in the interest ie 12.5 on the form or the amount on which one is applying the 12.5%
 
doitearis said:
re pat bateman post; Is this correct - I would have though the amount on which one is claiming is reducing each year so therefore the 12.5% gives a different amount each year? is this so? does one fill in the interest ie 12.5 on the form or the amount on which one is applying the 12.5%
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It's 100% correct (i.e. you "though" wrong).
 
doitearis said:
ok, just learning myself! So do I take it I only fill in the interest amount of form 11?
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I don't get what you mean by "interest".

Say a landlord purchases a capital item (such as a cooker) for (say) €800. He's not allowed claim a deduction against the rent for the purchase. Instead, he claims capital allowances (i.e. tax depreciation) at a rate of 12.5% (i.e. 1/8) over a period of 8 years. That's a deduction of €100 per year for 8 years. It'd be reflected on the Form 11 under "capital allowances" as €100.
 
thanks, that's what I meant, the calculation (not interest!) I worked out the current value of fixtures and fittings as 18,000 is this excessive?
 
doitearis said:
thanks, that's what I meant, the calculation (not interest!) I worked out the current value of fixtures and fittings as 18,000 is this excessive?
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How long is a piece of string?

What's the €18,000 made up of?
 
doitearis said:
kitchen, bathroom, suites, beds, wooden floors, white goods etc
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Some of the above items may not qualify for capital allowances.

If they're "enhancement" (for example), you wouldn't get a deduction until you dispose of the property (i.e. against any CGT which may arise).
 
What do you mean by "enhancement"? was family home before letting last year. which items wouldn't qualify?
 
doitearis said:
What do you mean by "enhancement"? was family home before letting last year. which items wouldn't qualify?
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You should speak with a tax adviser.

I'm happy to give you a high level steer but spoon feeding you on a Sunday evening when you should be paying someone to do so isn't my idea of fun.

Check out Revenue's website (www.revenue.ie)

You should find useful information there.
 
thanks for your "high level steer" batemean - I was not asking you in particular and you did choose to answer surely?
 
There is a simple way to sort out what is "enhancement" and what is contents on which you can claim wear & tear: if you sold the house and were clearing it out, you would remove the contents and leave the enhancements.
 
Not a lot. There might be one or two arguable matters on the borderline.

If you sold a house you are expected to leave fitted kitchens and other fitted furniture behind, also bathroom fittings, and timber flooring.

The argument might be about built-in ovens and the like.
 
I heard you can write off basic items such as toaster/ketttle cups etc on the first year is this correct???
 
Is it correct that one can claim for central heating system as capital allowances?
 
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