Rental Apt Wear & Tear Allowance Expiry

Thomas1

Registered User
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48
Hi,

I’m fine on the rental income and expenses calculations but a little fuzzy on how capital allowances (CAs) work apart from being able to use 12.5% each year over 8 years, specifically in relation to unused CAs. I’d really appreciate a steer.
  1. Should capital allowances (CAs) be used to bring myself into a paper loss situation each year?

  2. If so, can this paper loss be carried forward?

  3. At the end of each year, will the CAs unused be lost?

  4. If not, at the end of Year 8, will the unused CAs be lost?
The CAs I'm talking about relate to general capital expenditure (wear and tear) on furniture, white goods etc.

Many thanks
Thomas
 
Last edited:
Thanks Toledo!

What if my profit is only €5 in a given year yet I have €12.50 CA from my toaster - what happens to the remaining €7.50? Can I carry it for infinity until I have a profit to utilise it against?
 
Thanks Toledo!

What if my profit is only €5 in a given year yet I have €12.50 CA from my toaster - what happens to the remaining €7.50? Can I carry it for infinity until I have a profit to utilise it against?


Carries forward indefinitely until you have a gain.
 
Carries forward indefinitely until you have a gain.

Thanks again Toledo!

One more quick one, can the wear and tear allowance that is unused on one property be used to reduce the taxable rental profit on another property or are the allowances property specific? Both owned by the same investor.
 
Last edited:
One more quick one, can the wear and tear allowance that is unused on one property be used to reduce the taxable rental profit on another property or are the allowances property specific?
The former, assuming both are Irish-situated properties.
 
Thanks again Toledo!

One more quick one, can the wear and tear allowance that is unused on one property be used to reduce the taxable rental profit on another property or are the allowances property specific? Both owned by the same investor.

The last poster is correct Thomas, the capital allowances can be pooled over the whole of your portfolio, once located in Ireland.
 
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