# Can cost of repair/replacement appliance be written off against tax?



## Neil_Ireland (27 Feb 2012)

Hi all, newbie landlord question.

My ppr is rented, the dishwasher has broken. Can the cost of repair or cost of replacement be written of against tax?

Thanks


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## Brown (27 Feb 2012)

Yes


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## Neil_Ireland (28 Feb 2012)

Brown said:


> Yes



Thanks.

Both repair or replacement can be claimed?


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## sam h (28 Feb 2012)

Neil_Ireland said:


> Hi all, newbie landlord question.
> 
> My ppr is rented, the dishwasher has broken. Can the cost of repair or cost of replacement be written of against tax?
> 
> Thanks


 
Can you clarify - I'm reading it that your former PPR is now rented out to another person.....is that correct ?  (I'm assuming so as you said "newbie landlord")

If so, it is no longer your PRR (as I assume you have moved elsewhere) & you must have paid your NPPR tax in order to write of 75% mortgage interest.  

Not having paid this will not affect your ability to claim for the dishwasher repair *BUT* will leave you exposed to late fees for non payment of the NPPR tax & the inability to claim on your interest - either of which will probably be far higher than the fee charged for NPPR.

I am not an accountant so if I've not been 100% accurate, maybe somebody else can clarify.


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## mandelbrot (28 Feb 2012)

sam h said:


> Can you clarify - I'm reading it that your former PPR is now rented out to another person.....is that correct ? (I'm assuming so as you said "newbie landlord")
> 
> If so, it is no longer your PRR (as I assume you have moved elsewhere) & you must have paid your NPPR tax in order to write of 75% mortgage interest.
> 
> ...


 
I think you are confusing the NPPR with the requirement to register tenancies with the PRTB (Private Residential Tenancies Board https://www.prtb.ie/) - AFAIK this is the only requirement in order for mortgage interest to be deductible.

Having said that, OP should still make sure they pay the NPPR as well, as the penalties are quite punitive for non-payment / late payment.


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## sam h (28 Feb 2012)

mandelbrot - of course, you are correct!! I should have said PRTB, my mistake.

So:
PRTB - €90 in order to be compliant with the law & to be able to claim 75% of mortgage interest (it is payable even if you have no mortgage interest to claim)
NPPR - €200 & late fees apply very quickly & excessively
Household charge - €100 & more late fees

€390 (assuming all paid in good time) & God only knows what it will be next year !!


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## Bronte (28 Feb 2012)

The repair/replacement part/labour is written off, if you buy a new dishwasher you put it under wear and tear over 8 years.


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## mandelbrot (28 Feb 2012)

Neil_Ireland said:


> Thanks.
> 
> Both repair or replacement can be claimed?


 
Both can be claimed, but treatment depends on which it is (and whether or not you consider a dishwasher to be a capital asset).

If you spend money repairing an asset, that's an expense, allowable in full in the year you paid for the repair.

If you have to replace a capital asset on which you have been claiming acapital allowances, then two things actually happen:
Firstly, the obsolete asset has to be written down to zero (or it's scrap value), so you claim a balancing allowance.
Secondly, you will have bought a new asset to replace the old one, and you will be entitled to write the cost of this new one off over 8 years by way of capital allowances.

For example let's say you've got a dishwasher that cost you €320 two years ago. You'll be writing this cost off at 12.5% over 8 years, so that's €40 p.a., so it's carrying value is €240.

Say it breaks down tomorrow, and you pay €50 to get it repaired. That's an expense, allowable against your rental income (assuming you have a receipt!).

Now let's say it breaks down again next month, and isn't worth the cost of the repair. You bring it to the WEEE centre, and buy a new replacement dishwasher for €300.

You will be entitled to claim a balancing allowance of €240 (the amount of the original cost of €320 that you haven't yet claimed), and you will have a new asset at a cost of €360, which you will claim annual capital allowance of €45 against rental income.


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## Neil_Ireland (28 Feb 2012)

Thanks for the help guys.

Yes the house was my ppr, I've since moved out.

I'm already registered with the prtb and plan on paying the €200 nppr tax when it opens for payment on the 31st of March.

Ill go with the repaid I'd say, easiest option.


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## Bronte (1 Mar 2012)

Neil_Ireland said:


> plan on paying the €200 nppr tax when it opens for payment on the 31st of March.


 
As far as I know you can register with the NPPR now and pay close to month end.


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## dillons (5 Feb 2013)

*replacement appliance tax treatment*



mandelbrot said:


> Both can be claimed, but treatment depends on which it is (and whether or not you consider a dishwasher to be a capital asset).
> 
> If you spend money repairing an asset, that's an expense, allowable in full in the year you paid for the repair.
> 
> ...


 
apologies for ressurecting an old thread but I just came across the above & didn't realise this was the way to treat the replacement purchase of a new appliance. I had been writing the cost of the replacement machine off in full as an expense in the year I bought it and then excluding it from my inventory list for wear & tear. Is this wrong? will revenue pull me up on this method of costing?


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## JJ47 (13 Feb 2013)

following on from the above. 
my wear and tear allowance has now finished as my dwelling has been rented since 2002. I have recently had to buy a new suite and some other furniture for the house. Can any of the above expenses be deducted against tax in my 2012 return to Revenue?


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## Bronte (14 Feb 2013)

JJ47 said:


> I have recently had to buy a new suite and some other furniture for the house. Can any of the above expenses be deducted against tax in my 2012 return to Revenue?


 
If you purchased the suite in 2012 you claim it beginning in 2012 for wear at tear (over 8 years at 12.5% per year - remember that is the current rule, in 2002 it might have been a different percentage etc - look up revenue.ie)

Strange that you've had no purchse since 2002 that needed W&T deduction. I must confess that when I used to do my returns a few years ago I just put it down as one amount and didn't do the W&T. But I was running at a loss so tax wise it doesn't matter and I'm not redoing ancient tax returns for a washing machine etc. (Hope this answers you too Dillons). 

If you purchase say a dishwasher this year, then it will go the same way for your 2013 returns.


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## BarneyMc (3 May 2013)

I hope I can jump in here and ask if I replace the windows in a rented property at e.g. €2,000 then can this be written off against tax?


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