Hi All,
I've a capital expenses related tax question.
I have a house rented out. I claimed capital expenses (12.5%) for some of the fittings/fixtures. Washer/dryer broke down twice last year and was repaired. Repairs were offset against 2019 taxes. Now it it was broken down again and its uneconomical to repair so it needs to be replaced. I think I can claim a balance allowance for what was left in W&T in the old washing/dryer. What happens that balancing allowance? Does that get applied in one year or get prorated over what is remaining from the 8 years W&T? Or do I just right the replacement cost off this years taxes and not included it in capital expenses going forward?
Thanks!
I've a capital expenses related tax question.
I have a house rented out. I claimed capital expenses (12.5%) for some of the fittings/fixtures. Washer/dryer broke down twice last year and was repaired. Repairs were offset against 2019 taxes. Now it it was broken down again and its uneconomical to repair so it needs to be replaced. I think I can claim a balance allowance for what was left in W&T in the old washing/dryer. What happens that balancing allowance? Does that get applied in one year or get prorated over what is remaining from the 8 years W&T? Or do I just right the replacement cost off this years taxes and not included it in capital expenses going forward?
Thanks!