New windows in rented property

Ray Palmer

Pawwed Rig wrote: »

Insulation definitely is not deductible as it is a capital expense. I would be sceptical whether windows could be deducted but can see an argument for and against. I would be surprised if they could be tbh.

Taxman said otherwise

The_Conductor

Ray Palmer wrote: »

Taxman said otherwise

And totally opposite here.
It would appear Revenue are not being consistent.

ted1

The_Conductor wrote: »

A landlord can claim 'repairs' as a tax deductible expense, but not an upgrade to the property, such as the installation of double glazed windows. Repairs are deemed to be remedial work and or parts as necessary to restore an asset to its original state.

Fixtures and Fittings- such as carpets/central heating system (yes, central heating is included) / cookers/ hoover/ light kitchen white goods (incl. washing machine etc) would all be tax deductible (over 5 years, on a flat line deduction basis). This is why tenants don't replace carpets/white goods/electricals etc- why bother- when its a tax deductible expense for the landlord?

OP- talk to your landlord. They are under no obligation to assist with this. Its possible there may be grants available (SEI or other) to assist with the cost. The landlord isn't going to get a tax credit here though- its a straight hit in the pocket- mind you, it would mean the house would be more attractive to potential renters, so they should be able to charge a higher rent.

I was audited recently and the Revenue let me claim the windows I put in as a legitimate expense for the year they were put in.

So I'm pretty confident that its allowed be used as a deduction. I was audited going back 6 years and managed to pay zero tax as I had enough dedictions. Pretty sure they were pusses off with me and would have enjoyed not letting me claim the windows if I could

murphaph

The windows would be allowed as a capital expense and thus depreciated over 8 years until their book value is nil. So, windows cost say 8k, you deduct 1k a year from your gross rent (as well as any other deductions you have) when calculating your taxable income.

ted1

They let me claim the full cost in the year they were put in.

The_Conductor

They seem to be handling it in a different way with everybody here. It would be nice if there was some consistent way of dealing with items like this- it seems to be a roll of the dice, which is plain unfair.

Pawwed Rig

From http://www.revenue.ie/en/tax/it/leaflets/it70.html#section7
(edited slightly by me)

Wear and tear allowances are available in respect of capital expenditure incurred on fixtures and fittings (for example, furniture, kitchen appliances, etc) provided by a Landlord for the purposes of furnishing rented residential accommodation.


What Expenditure Cannot Be Deducted?

The following are examples of expenditure you may not deduct when computing your rental income or losses:

• expenses incurred prior to the date on which the premises was first let apart from auctioneer’s letting fees, advertising fees and legal expenses incurred on first lettings,
• Expenditure incurred between lettings in certain circumstances,
• Capital expenditure incurred on additions, alterations or improvements to the premises unless allowable under an incentive scheme or incurred on fixtures and fittings,
• NPPR

Now we can argue whether or not upgrading your windows is an improvement to a premises. I think it would definitely be an improvement in the OPs case (a desperate attempt to stay on topic;)) but to add something like wall insulation that was not present before and can therefore not be considered a replacement would be stretching the issue. Having said that, the above is as clear as the legislation gets and is therefore open to interpretation.

I will hunt about a bit more and see if I get a more definitive answer.

Mustard1972

I dont think your landlord would go for the "I'll sign a long lease if you change the windows for me" deal.
A lease means nothing in Ireland as far a guaranteeing a tenant will stay for the length of the lease.
Threads here about tenants skipping on leases all the time and what happens about it? Nothing.

Immaculata

MILF wrote: »

Is anyone able to tell me if she is obliged to replace these windows or do we have any leg to stand on? Our heating bills are massive in the winter and I don't want to have to go through another winter like that!

Your LL isn't obliged to replace the windows. If the size of the heating bills is too much for you (understandably), I'd say your options are to attempt again to negotiate with your LL; to buy thermal curtains; or to move house.

I realise you're a tenant in good standing, but it maybe that your LL simply can't afford to replace the windows, even if she'd like to.