Do you have any credit card statements or bank statements that would show the transactions? I don't have all my receipts either, as we never intended to rent, however I went through credit card and bank statements and found most of the transactions, which I think is also considered proof of purchase.
I suppose you could make a guesstimate of the total cost but it would have to be a realistic figure.
You can deduct a % of these as a capital cost - e.g. if you used the furniture for 2 years, then you should reduce the cost by 12.5% for 2 years and use this amount to calculate your capital expense. My tax accountant told me that the balance could then be deducted over the following 6 years (rather than 8).
Yes, you would take €6000 as the starting cost. Then deduct €1,000 (12.5% of original cost - not your new starting figure) over 6 years. This was how I was advised to do it by my tax accountant.
Is this definitively correct? I'm not so sure. Depreciation is a business accounting concept that has little relevance for privately-owned consumer goods.
I would argue that the appropriate starting cost should be, not the depreciated cost, but a fair valuation of the contents items at the date of first letting.
Take the example of a damaged badly piece of furniture that happens to be a year old. It would be a nonsense to assume that it has retained 87.5% of its original value.
Is this definitively correct? I'm not so sure. Depreciation is a business accounting concept that has little relevance for privately-owned consumer goods.
I would argue that the appropriate starting cost should be, not the depreciated cost, but a fair valuation of the contents items at the date of first letting.
Take the example of a damaged badly piece of furniture that happens to be a year old. It would be a nonsense to assume that it has retained 87.5% of its original value.
. So in the case of an asset that was 3 years old at time of first letting, it will be introduced at its original cost, already written down by 37.5%, with 62.5% remaining to be written off over the remaining 5 years.
I'm afraid it's quite correct Bronte! Almost all assets which attract capital allowances have an 8 year tax life (and in the context of this thread, it is all such assets), so in the situation you've outlined above the owner is deemed to already have realised the value of the asset over the 8 years they've already owned it.I don't think that's correct. It would mean that if you rent a house after 8 years you would be entitled to write of zero for wear and tear.
The link I've made is to the sections of the taxes acts that govern wear & tear allowances for machinery & plant - principally S.284 "Wear and tear allowances".That link you've made doesn't look like it's for ordinary house rentals.
It probably is a bit complicated for a lay person, but the entire tax system is governed by complicated legislation, which is exactly why people pay accountants & tax advisors!This thread has become very complicated and difficult to follow. It would be better if people have questions that they start their own thread. Also looks to me like a lot of people would do well to hire an accountant. It's a tax deductable expense and won't break the bank.
the entire tax system is governed by complicated legislation, which is exactly why people pay accountants & tax advisors!
Worth noting also that some aspects are governed not by legislation but by Revenue edicts in the form of Tax Brieifings, eBriefs and other sources. One relatively recent example was the Revenue statement that NPPR was not an allowable deduction against rental income.
folks, quick question
Tax liability due by tomorrow for 2011 liability.
But do you also have to pay a 'preliminary' tax for 2012 (best estimate of what is due for 2012?)
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