# tax treatment of new boiler in rental property



## noel 2006 (11 Feb 2011)

Is it possible to claim a tax deduction over time for a new boiler in an existing rental property?


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## WindUp (11 Feb 2011)

Is it replacing an existing boiler? or a new central heating system---if it's a replacement claim it all this year


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## noel 2006 (12 Feb 2011)

Thanks for reply.  A new boiler would replace the existing boiler but would be of higher quality. It would allow for separate heating of water for the purposes of (i) hot water and (ii) heating the house which is not the case at present.


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## WindUp (12 Feb 2011)

i would allow it in full


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## deadlyduck (12 Feb 2011)

Hate to muddy the waters (and I might be wrong) but my view is that the cost of the replacement boiler is capital expenditure [unless perhaps if the cost is immaterial] and that the tax deduction could only be claimed over a number of years rather than all at once 

As an analogy, if the asset in question was a replacement car, shouldn't it be treated as a capital addition with allowances spread over 8 years rather than a 1 year write off?

I'd suggest that the original poster might need to clarify this with his accountant for added assurance.


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## Westgolf (12 Feb 2011)

deadlyduck said:


> Hate to muddy the waters (and I might be wrong) but my view is that the cost of the replacement boiler is capital expenditure [unless perhaps if the cost is immaterial] and that the tax deduction could only be claimed over a number of years rather than all at once
> 
> As an analogy, if the asset in question was a replacement car, shouldn't it be treated as a capital addition with allowances spread over 8 years rather than a 1 year write off?
> 
> I'd suggest that the original poster might need to clarify this with his accountant for added assurance.



Hi Deadlyduck,

In essence you are quite correct, but on a practical level, assuming its a firebird or some similar brand of boiler, the outlay would be in the region of €650 - €800 fitted so I think its easier to take the hit all in one year rather than €82 - €100 per year over 8 years.If the house has been previously rented and is being refurbished between lettings then the OP probably has other claimable expenses also so it comes down to the total amount of the expenditure and whether or not to go all in one year or down the line.

Great username by the way !

Regards

Westgolf


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## noel 2006 (14 Feb 2011)

A new boiler would be a condensing gas boiler and I understand that the cost could be from €2000 upwards.  
I have read the Revenue's guide to rental income but on this issue it isn't clear to me.  At one point it mentions central heating as an example of wear and tear that can be claimed as an expense:
'Wear and Tear on furniture and fittings, e.g. carpets, cookers, central heating etc.'
In other part of the guide it gives a list of expenses that cannot be claimed and this list includes the following:
'Capital expenditure incurred on additions, alterations or improvements to the premises unless allowable under an Incentive scheme'
This could suggest that a new boiler is not deductible but this would not seem reasonable to me.  
Any further clarifications would be appreciated.


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## WindUp (14 Feb 2011)

Noel 

I have always advised that a central heating system is enhancement and should not be claimed as wear and tear (basically I'd treat anything that you cannot take with you as Enhancement)

However if you are replacing / repairing an existing system and not really enhancing the property value I would claim it in full as repairs

Others might disagree.


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## noel 2006 (15 Feb 2011)

Many thanks WindUp and other respondents for the replies.  It is a replacment boiler so I am inclined towards the view of WindUp and Westgolf.  

Best regards,
Noel.


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