Replacing Windows in Rented Property

BarneyMc

If renting out a property can you get tax breaks for repairs such as replacing the windows?

_Kaiser_

BarneyMc wrote: »

If renting out a property can you get tax breaks for repairs such as replacing the windows?

I'm going to guess no, but I'm not sure why you think you would for conducting essential maintenance?

StillWaters

Id imagine you could offset them as capital expenditure over 8 years.

BarneyMc

Kaiser2000 wrote: »

I'm going to guess no, but I'm not sure why you think you would for conducting essential maintenance?

It's not 'essential' maintenance. I was just under the impression that replacement of old windows, carpets, etc could be offset against tax.

BarneyMc

StillWaters wrote: »

Id imagine you could offset them as capital expenditure over 8 years.

Replacing my windows would only cost €2,000 so could this be offset in one year?

Kosseegan

BarneyMc wrote: »

Replacing my windows would only cost €2,000 so could this be offset in one year?

A deduction (which is a current item) is allowed in respect of a repair but not an enhancement (which is a capital allowance item). If the old windows are rotten and must be replace it is more likely to be a repair. If the windows are changed for insulation or cosmetic reasons it is an enhancement.

Ray Palmer

BarneyMc wrote: »

Replacing my windows would only cost €2,000 so could this be offset in one year?

You can't offset in all in a year there are tax regulations that allow you to write it off over time as a capital expenditure.

Fixing a window can be written off in a year as it is maintenance where as replacement is an improvement to the property

D3PO

you can write it off only if it is a repair, or necessary maintenance. Not if it is for cosmetic reasons.

If the windows fall into that bracket then yes you can write them off but over 8 years capital expenditure. So in this instance that would mean writing off a 250 euro tax liability each year.

BarneyMc

Thanks all for your help.

The windows are very old aluminium ones and there is mould on the blinds. The difference between the room temp and the window temp is causing this I think. Cosmetic or necessary maintenance and who decides?

Also, is it necessary to spread the capital expenditure over 8 years?

StillWaters

BarneyMc wrote: »

Thanks all for your help.

The windows are very old aluminium ones and there is mould on the blinds. The difference between the room temp and the window temp is causing this I think. Cosmetic or necessary maintenance and who decides?

Also, is it necessary to spread the capital expenditure over 8 years?

Common sense decides. As long as you can justify your decision to Revenue you should be OK. To me, this sounds like an enhancement and should be written off over the 8 years.

D3PO

BarneyMc wrote: »

Thanks all for your help.

The windows are very old aluminium ones and there is mould on the blinds. The difference between the room temp and the window temp is causing this I think. Cosmetic or necessary maintenance and who decides?

Also, is it necessary to spread the capital expenditure over 8 years?

I agree with the last post. Sounds like necessary maintenance. Once you can explain to revenue if queried then your ok.

All capital expenditure for rentals is done at a rate of 12.5% per year. This isn't just for your windows but for anything, new furniture, carpets etc etc etc. So yes its very necessary and is always the case.

Ray Palmer

D3PO wrote: »

I agree with the last post. Sounds like necessary maintenance. Once you can explain to revenue if queried then your ok.

All capital expenditure for rentals is done at a rate of 12.5% per year. This isn't just for your windows but for anything, new furniture, carpets etc etc etc. So yes its very necessary and is always the case.

It doesn't sound like it to me. Mould will appear on blinds due to condensation and lack of cleaning. If the windows were letting in rain or a draft it would be a maintenance issue. From what has been described it is just normal condensation that will happen with double glazing too. Glass is cold and the air in a house is warm with moisture so it will happen.

Whether the vents are open and the water being cleaned up are the issues.

BarneyMc

A year ago during the hard winter there was frost on the inside of some of them. One of them lets in rain when the wind is blowing that way. The seals are gone in places on a lot of them also so there is a regular draft. Structurally they're ok though.

Ray Palmer

Get the seals replaced so. It isn't a big or expensive job.

If you owned the house would you replace the windows?

I find it a little funny that people expect a rented property to be above standard property in Ireland. It is a snap shot of property in the country. New property will generally be a higher standard than older properties. In saying that new property will probably have different problems appear after some time.

D3PO

Ray Palmer wrote: »

Get the seals replaced so. It isn't a big or expensive job.

If you owned the house would you replace the windows?

I find it a little funny that people expect a rented property to be above standard property in Ireland. It is a snap shot of property in the country. New property will generally be a higher standard than older properties. In saying that new property will probably have different problems appear after some time.

why would you ? Replacing the window is a legitimate way of resolving the issue. There is nothing saying that a landlord must only do a patch job as it costs less and therefore is less to write off against tax.

You would be a fool not to avail of the opportunity to legitimately replace the window in question and writing off against tax. No to mind the fact a patch job could impact on you ability to rent said property as prospective tenants could see you as a landlord who will cut corners to solve issues.

BarneyMc

Ray Palmer wrote: »

Get the seals replaced so. It isn't a big or expensive job.

Got this done about 5 years ago and the seals but they are lifting again in places.

Ray Palmer wrote: »

If you owned the house would you replace the windows?

Probably. If there was a tax break then certainly.

Ray Palmer wrote: »

I find it a little funny that people expect a rented property to be above standard property in Ireland. It is a snap shot of property in the country. New property will generally be a higher standard than older properties. In saying that new property will probably have different problems appear after some time.

If you saw the windows you'd agree they're not above standard windows... frost on the inside, rain water getting in, drafts. I just want to know if I can claim against tax if I replace them.

Ray Palmer

BarneyMc wrote: »

If you saw the windows you'd agree they're not above standard windows... frost on the inside, rain water getting in, drafts. I just want to know if I can claim against tax if I replace them.

No

D3PO

Ray Palmer wrote: »

No

Yes he can. :rolleyes: rather than opinion lets try stick to the guidelines for the OP to work with. For the symptoms mentioned by the OP window replacement is a legitimate way of resolving the issue. As a legitimate was of resolving the issue it is a capital expenditure and therefore tax deductible.

Ultimately you or I will not decide on this, revenues determination on the matter is what counts. I would be more than confident that revenue would accept the OP's reasoning for replacing the window on the very rare chance he is audited and this particular capital expense is queried.

Which it would not. Its not a case of him replacing all the windows in the house for which would look very dubious and if that were the case then Id agree with you that trying to write this off against tax would be folly.

Ray Palmer

D3PO wrote: »

Yes he can. :rolleyes: rather than opinion lets try stick to the guidelines for the OP to work with. For the symptoms mentioned by the OP window replacement is a legitimate way of resolving the issue. As a legitimate was of resolving the issue it is a capital expenditure and therefore tax deductible.

Ultimately you or I will not decide on this, revenues determination on the matter is what counts. I would be more than confident that revenue would accept the OP's reasoning for replacing the window on the very rare chance he is audited and this particular capital expense is queried.

Which it would not. Its not a case of him replacing all the windows in the house for which would look very dubious and if that were the case then Id agree with you that trying to write this off against tax would be folly.

Sorry I though the OP was the tenant which is what I was answering no to.

Replacing the seals will address the problem.

The question about whether tax can be claimed back has been well answered at this point.

BarneyMc

Ray Palmer wrote: »

The question about whether tax can be claimed back has been well answered at this point.

Yes, thanks to D3PO

sunnysoutheast

The cost of repair to an asset can be claimed in full in the year of expenditure. The Revenue guide IT70 specifically mentions repairs to windows as an example of expenses which are normally deductible.

The same section states that expense of a capital nature is not allowable, although the interest on loans for capital expenditure is allowable within limits. The capital allowances for wear and tear (the 12.5% over 8 years) only apply to fixtures and fittings, I do not believe that this would include the replacement of windows.

So, to answer the OP's question I believe any repairs would be fully claimable, as long as the property was only brought back to its original standard. Personally I think one could make a case that, if the cost of replacement was similar to the cost for repairs and/or repairs were impracticable, that the cost of like-for-like replacement (not an enhancement) was a reasonable expense if audited.

OP I note that you have posted this query on other forums. I would be interested if you get a definitive answer.