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Extension to residential house for business

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  • 10-12-2013 2:51pm
    #1
    Ray Palmer
    Registered Users Posts: 8,395 ✭✭✭


    Anybody know the tax benefits of extending a home office for business use? I am under the impression you can charge your company extra for rent but keep the property in your name as opposed to the company.

    I want to make the office bigger and have a separate bathroom for it as at the moment it means anybody visiting the office is going into the rest of the house to use the bathroom. I just want it to be more separate from the house.


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    #2
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    This is a complex area and you need to get proper financial advice on what you can claim relief on. There was a suggestion on thread on here that depending on how your use is structured that you could cause tax problems later when it came to selling the property. You need definitive facts for your precise situation, not opinions from on here! Talk to an accountant.


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    #3
    Ray Palmer
    Registered Users Posts: 8,395 ✭✭✭Ray Palmer


    Peterdalkey wrote: »
    This is a complex area and you need to get proper financial advice on what you can claim relief on. There was a suggestion on thread on here that depending on how your use is structured that you could cause tax problems later when it came to selling the property. You need definitive facts for your precise situation, not opinions from on here! Talk to an accountant.


    It isn't that complex with regard to the house sale. I would of course check with my accountant before a full decision. Just looking for general opinion and advise on how others have done this.


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    #4
    Jonblack
    Registered Users Posts: 119 ✭✭Jonblack


    Check how much rates you will have to pay.


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    #5
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Ray Palmer wrote: »
    It isn't that complex with regard to the house sale.

    I (very) vaguely recall something about paying capital gains tax when you come to sell, a proportion of the house wouldn't qualify as your principal primary residence.


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    #6
    Ray Palmer
    Registered Users Posts: 8,395 ✭✭✭Ray Palmer


    Jonblack wrote: »
    Check how much rates you will have to pay.
    Roughly €250 a year as a shared purpose building and I have to pay it as is already
    Graham wrote: »
    I (very) vaguely recall something about paying capital gains tax when you come to sell, a proportion of the house wouldn't qualify as your principal primary residence.

    Yes that is vaguely it but I am not concerned as I have no plans to sell. There are valid ways around this.

    Two valid points but they are not my concern. I am trying to figure out do I get a loan to do it or just pay outright. The loan is easier to show on books as a cost. If I spend €10k to get it done how do I then put it as a cost to be paid back. I know getting the company to do it is not the best way due to CGT for example.


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