Buying an apartment for business purposes

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goosebump

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I live outside Dublin but stay in Dublin 1 to 2 nights per week for work. Up until now, I have been staying in hotels.

I'm thinking of buying a cheap 2-bed apartment (cash purchase), renting out the other room and using one room for myself.

I conduct my business as a limited company, and obviously up until now, I have been deducting my hotel bills as expenses.

What's the best approach here?

Can my company buy the apartment? If so, can I write off part of the cost as a business expense?

If I buy the apartment myself, how should I book it as a cost, given that my use of it would be for business purposes?
 
Would the costs of buying and maintaining an apartment be cheaper to you than hotel costs? Have you costed this out? It would seem far easier to keep staying in hotels, not to mention the renting out the other room aspect.
 
Hi goosebump

You really need to talk to your accountant about this.

It's generally not a good idea for a company to buy property. Check out this Key Post

Should I buy my business premises through the company or in my own name?



The Revenue would be very careful about a company which owns a residential property in which the owner of the company stays. There would be all sorts of BIK issues here.

The Revenue will not query your Dublin hotel bills

If you did buy an apartment in your own name, it would be very difficult to justify charging the costs of staying two days a week. You would charge the company rent. If it was very reasonable, e.g. 2/7ths the total costs, they might accept it.

I think your options are
Stay in a hotel and have minimal queries about the expenses.
Buy it yourself and don't charge the costs to the company.

Brendan
 
I cannot see the problem with buying the property in your own name and charging the company for any business use of it.

For costs in a company to be tax deductible they must be "wholly and exclusively" for the company's business.

The only possible objection the Revenue might have is that if they suspect you were using the apartment for non business trips.

If you have an established pattern of business trips to Dublin and keep a clear record of each use such as, stayed apt Thursday, business meeting with XXX Friday morning. I cannot see the problem.

Obviously if you go to Dublin for a weekend on the town and stay in the apartment, you should not charge this to the company.
 
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