Unused capital allowances

[Luternau]

I had to replace a washer dryer in a new rented apartment that packed up after only 3yrs-and and consequently was only depreciated 37.5%. Do I return the unused amount as an expense for the tax year it packs up? It would seem bad accounting to continue to depreciate it when I am now depreciating its replacement.

 

[extopia]

Ii believe that generally if a business asset is scrapped you can claim the capital balance as a balancing allowance for the year. But TBH I'm not au fait with rental property expenses and if there are any special rules.

 

[Luternau]

Thanks Extopia.
I think the same depreciation rules apply to furniture and fittings in rental property as business in general. Do you know how it is returned on Form 11?
Hypthetically, what if a tenant damaged new furniture and flooring,then vanished leaving the landlord to pick up the cost. Could the damaged goods can be written off in the same manner?

 

[delgirl]

In the event of an item being scrapped prior to the end of the eight year period, the balance of the cost price on which the relief has not been claimed is claimed in the year the item is scrapped.

Not sure about your second question - the security deposit should be used to cover any damages by the tenant. I suppose there may be a case to be made if you have made every effort to pursue the tenant and recover the cost of the damaged items?

 

[extopia]

You claim your capital allowances on rented property on the Form 11 under the Irish Rental Income section - there's a whole section there for Capital Allowances.

Note: I'm talking about the ROS version of the Form 11, not sure of the layout of the paper version, but I'm sure it's pretty similar.