Kitchen.....allowance write off

crackcrack30

I have a friend who bought a new family home but kept his first house as a rental property......

The rental property is in excellent condition , most of the furniture left in it is "like new condition" the kitchen units/top ect must be worth (now) 8,000 euro and is showroom condition even though it is about 5 years old....

My question is can he self value the fitted kitchen at 8,000 euro and wright it off at 12.5% over the next 8 years? as i'm sure it will be probably need replacing in 8 yrs......

ted1

crackcrack30 wrote: »

I have a friend who bought a new family home but kept his first house as a rental property......

The rental property is in excellent condition , most of the furniture left in it is "like new condition" the kitchen units/top ect must be worth (now) 8,000 euro and is showroom condition even though it is about 5 years old....

My question is can he self value the fitted kitchen at 8,000 euro and wright it off at 12.5% over the next 8 years? as i'm sure it will be probably need replacing in 8 yrs......

if its 5 years old, then no. 67.5% is already depreciated. He may be able to the remainder over 3 years.

sunnysoutheast

crackcrack30 wrote: »

I have a friend who bought a new family home but kept his first house as a rental property......

The rental property is in excellent condition , most of the furniture left in it is "like new condition" the kitchen units/top ect must be worth (now) 8,000 euro and is showroom condition even though it is about 5 years old....

My question is can he self value the fitted kitchen at 8,000 euro and wright it off at 12.5% over the next 8 years? as i'm sure it will be probably need replacing in 8 yrs......

The fixtures and fittings can be used to claim allowances from the commencement of the rental, based on their valuation at that point. There is no fixed method I am aware of for valuing 2nd hand kitchens etc., the approach I was recommended to use was to depreciate the item by 12.5% for each year prior to the rental to work out the "book" value, and then claim 12.5% each year for 8 years from then on. If the item needs to be replaced prior to the 8 years a balancing payment can be claimed when writing off the asset.

Other people have different approaches. If you are planning to use an accountant they will advise you.

crackcrack30

Thanks for reply....that clears it up..