Allowable Landlord Deductions - First letting

[Scot Young]

Hi. About to be first time landlord. Found the below advice (Irish Times) but am confused.

"You can also claim for wear and tear. This effectively covers the cost of materials acquired to furnish your rental property. While some landlords will recount tales of furnishings that last only a few years, Revenue will allow such “capital allowances” at a rate of 12.5 per cent per year over eight years. Capital allowances do not cover costs incurred in extending, altering or refurbishing your property."
As it's first time letting, i need to furnish it, sofa, fridge, paint and decorate etc. quite a €€€ layout.

But also, am aware that as it's pre-first let, then i get no allowances? Is my interpretation correct? if not, what is claimable if i do it all pre-let? And if nothing, whats the solution, rent it out first and then do the work?

Secondly, i can claim relief for repair / maintenance work done? (but not my own time). My neighbour (Non-Vat registered builder) will be doing this. Can i claim €X / hour for his time?

Thanks


Scot

 

[Bronte]

Sofa and Fridge = W & T.

Paiting and decorating before first letting is not allowable.

Your labour is not allowed.

No you can't claim x per hour for the builder, you can claim for any work he does based on his invoice, and no it does not have to be a VAT invoice. Don't go down the road of no invoices and have one bank account only for all transactions on the rental property.

Check out revenue.ie and on here the landlord section for more advice. Are you PRTB and LPT registered.

If you do an extension, it will be tax deductable for Capital gains.

 

[Scot Young]

Sofa and Fridge = W & T. So, 12/5% per year, even though it's pre-first let?

Paiting and decorating before first letting is not allowable. But is,anytime after 1st letting, as a one-off in year carried out?

Your labour is not allowed. Agreed

No you can't claim x per hour for the builder, you can claim for any work he does based on his invoice, and no it does not have to be a VAT invoice. Don't go down the road of no invoices and have one bank account only for all transactions on the rental property.

Check out revenue.ie and on here the landlord section for more advice. Are you PRTB and LPT registered. Yes

Thanks