Section 23 Tax

[Fugu]

I spent €4,500 on refurnishing and decoration this year on a property, can I deduct the full amount or just 15% of it from my rental income?

 

[Kitty Kat]

Why do you say Section 23? Bit confused, Section 23 relates to Qualifying Expenditure not refurbishment. Also I am assuming that the 15% you refer to is the old Wear and Tear but not entirely sure, give me some more info and I can comment further.

Was the work carried out between tenants, before you had rented the property or whilst the tenants where living there?

 

[Fugu]

Why do you say Section 23? Bit confused, Section 23 relates to Qualifying Expenditure not refurbishment. Also I am assuming that the 15% you refer to is the old Wear and Tear but not entirely sure, give me some more info and I can comment further.

Was the work carried out between tenants, before you had rented the property or whilst the tenants where living there?

It's a section 23 property. I'm talking about the amount I can deduct from the rent when making the tax calculation ( can I deduct 15% of €4,500 or the full amount?). The refurbishment was carried out in between lettings. The 15% is the usual amount allowed deducted for capital expenditure

 

[Kitty Kat]

What you have to do is split the expenditure into Capital Expenditure and Repairs. The repairs element is offset against rent in that year and the Capital Expenditure is written off over 8 years at 12.5% per annum. If your did somethink like putting in a new bathroom, then this would be offset against the Capital Gain at the end. Each item is judged on its own merits.