Furniture & fittings amount for Revenue?

At present gathering together information to sort out my tax arrears. Would anybody know what is a reasonable amount that the revenue will accept for Furniture & Fittings for a 2 bed apartment. Would it be 8,000 euro over 6 yrs depreciation? Advice please.

You need to have an inventory and estimate the value of the furnishings and fittings in the apartment.

If it's a reasonable estimate, they will not be likely to come back seeking further information, but you have to have the paperwork, receipts if possible ready in case they do.

The allowance for depreciation is 12.5% over 8 years.

If you're not completely comfortable with what you're doing, contact a tax consultant - they can actually tell you about things you didn't realise you could claim for.

The long and short of it is that the amount you can claim is the amount you have valid receipts for. Do you have receipts? 8K sounds high. High numbers attract audits.

Howitzer said:

The long and short of it is that the amount you can claim is the amount you have valid receipts for. Do you have receipts? 8K sounds high. High numbers attract audits.

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Does 8K sound high?? We spend 15K decorating a one bed apartment and have receipts for everything. It was for a corporate let. This figure included the flooring, solid oak, and all kitchen appliances. I prsume these are all deductible expenses.

liteweight said:

Does 8K sound high?? We spend 15K decorating a one bed apartment and have receipts for everything. It was for a corporate let. This figure included the flooring, solid oak, and all kitchen appliances. I prsume these are all deductible expenses.

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In my experience it's high (I don't think white goods count and these generally would be the more expensive items, I stand open to correction on that. I don't think wooden flooring is deductable either as technically it's like an alteration to the property. A good tax consultant can really save you a fortune on grey areas like that.) Excluding white goods 8K is high, 15K is luxury, as I suppose is reflected in the fact that you're looking to rent to the corporate market.

Just to clarify. 8K looks high if you're declaring a low level of rental return (700 a month maybe). I'm sure 15K to kit the place will look small if the rental income is in the region of 2, 3K or greater pm.

Our tax consultant told us that all the white goods are deductible and the flooring. If you've heard differently, I'd like to know about it so that I can research it for myself. Better safe than sorry!!

My tax consultant also agrees that white goods and wooden flooring are decuctible - the flooring as it's not secured to the building and can easily be removed, unlike tiles which are a capital expense.

I had 2 x 3 bedroom houses in 2005 and the value of the furnishings and fittings was €12,328 and €13,500. I have receipts for most of the items, but some I do not as one of the properties was purchased with the contents.

According to my tax consultant, and to Tommy McGibney an accountant and previous AAM Moderator - "Once the estimates used are fair and reasonable, there should be no problem.

It would be important to keep safe a copy of the inventory for future reference if needed."

Another tip for new landlords starting out is that household accessories, i.e. kitchen, bathroom and other general household accessories, can be completely written off in year one and don't have to be added to the inventory and amortised each year at 12.5%. This refers to small items which have been purchased, but are generally not re-saleable e.g. rubbish bins, pots and pans, etc.

Also if an item is being scrapped prior to the end of the 8 year period, the balance of the cost price on which the relief has not been claimed can be claimed in the year in which it was scrapped.

I would advise any new landlord to meet with a tax consultant at least to set up the first year's rental accounts - his fee is also allowable. Mine is based in Dublin, if anyone would like his phone number, please PM me.