Damaged artwork expense

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  • Gordon999
    replied
    If you paid £50 for replacement picture, just book the £50 cost as allowable operating expense against the rental income. Nobody can prove this £50 expense is an "improvement to your property".

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  • jpkeates
    replied
    If something is purchased wholly and exclusively for the business it's an allowable expense of one kind or another.
    It doesn't have to be a sensible thing to buy, it just has to have been bought for the business.

    If it were a gift it would not be allowable, but it's hard to see how a replacement item of furniture is a gift.

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  • ram
    replied
    Originally posted by nukecad View Post
    I'd see this as an altruistic gift to your tenant and leave it at that
    As per above, as the place is "part-furnished", which will not incude pictures on walls.

    It's a gift to a stranger. ( They are not family, not close friends - etc. ) and not a claimable expence in any way..



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  • nukecad
    replied
    I'd see this as an altruistic gift to your tenant and leave it at that.

    My previous LL (although he had his faults) used to buy the 3 of us in his small HMO a £20 case of beer each at Christmas, I doubt he tried to claim it off tax.

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  • jtufty
    replied
    ram,

    Its let "part-furnished". (she didnt have a bed, so I put a bed in there, and the white goods, and the [now-broken] picture and a few other bits n bobs)

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  • Section20z
    replied
    Originally posted by jtufty View Post
    Thanks guys. I dont know what came over me! A momentary wave of altruism. Most unlike me!

    I have the receipt. What should I log it as? Should I literally just write "capital expense" or should I be more specific such as "replacement of broken picture"?
    You don't need to write anything. Retain the receipt and just include the appropriate amount in youR expenses/capital totals

    Leave a comment:


  • ram
    replied
    Originally posted by jtufty View Post
    I have the receipt. What should I log it as? Should I literally just write "capital expense" or should I be more specific such as "replacement of broken picture"?
    We assume the place is let as furnished ?

    I don't think pictures are classed as furniture / but then again, a mirror screwed to the wall - if broken by the tenant, then the tenant pays.
    So pictures ? not sure.
    I would charge the tenant the cost of replacement.


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  • jtufty
    replied
    Thanks guys. I dont know what came over me! A momentary wave of altruism. Most unlike me!

    I have the receipt. What should I log it as? Should I literally just write "capital expense" or should I be more specific such as "replacement of broken picture"?

    Leave a comment:


  • jpkeates
    replied
    It's a replacement item of furniture and its allowable as such.
    There's an inevitable element of betterment when you replace one thing with another.

    And £40 is neither here nor there as a capital item.

    Leave a comment:


  • Section20z
    replied
    That sounds definitely like an improvement as you didn't have to splash out £50 you crazy dude.
    £10 down to repairs and £40 capital expense I reckon.

    Leave a comment:


  • jtufty
    started a topic Damaged artwork expense

    Damaged artwork expense

    Hi all

    Silly minor question really. Last week the tenant accidentally knocked a framed picture off the wall and smashed it. It was only a cheap thing (I guess value was £10). I went out and bought a replacement picture for her. (I know I didnt have to, but shes a good tenant). I bought something quite nice, £50.

    I know I cant claim the full £50 as an expense (or can I?), but can I claim £10 which is my estimated value of what the old picture was worth? (and the mileage to drive to the shop?)

    Like I say, very minor thing, but thought Id ask the question.

    Thanks




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    by Neelix
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  • Reply to Will they raise taxes again?
    by Neelix
    That's a lots of unsatisfactory EICR's and remedial work - so not annual costs!...
    28-11-2021, 09:00 AM
  • Reply to Will they raise taxes again?
    by Neelix
    Wow.

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  • Reply to Will they raise taxes again?
    by jpucng62
    Clearly you were a bit behind on your electrical work!...
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