Damaged artwork expense

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    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





    #2
    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.

    Comment


      #3
      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.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        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"?

        Comment


          #5
          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.


          Comment


            #6
            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

            Comment


              #7
              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)

              Comment


                #8
                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.

                Comment


                  #9
                  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..



                  Comment


                    #10
                    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.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment


                      #11
                      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".

                      Comment

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