Susan owns a house in Spain which she rents out to a tenant.
In 2015, she bought a washing machine for the house which cost €250. She claimed capital allowances at a rate of 12.5% of the cost of the washing machine against her rental income from the house for the years 2015, 2016 and 2017.
In 2018, she sold the washing machine for €100. As she sold the washing machine for less than its written down value, she is allowed a balancing allowance.
The written down value of the washing machine is what it cost Susan, less the capital allowances she claimed.
Susan's balancing allowance calculations for 2018
Description | Amount |
Washing machine cost |
€250 |
Less 2015 Capital allowance €250 @ 12.5% |
€31 |
Less 2016 Capital allowance €250 @ 12.5% |
€31 |
Less 2017 Capital allowance €250 @ 12.5% |
€31 |
Written down value at end 2017 |
€157 |
Less proceeds of washing machine sold in 2018 |
€100 |
Balancing allowance for 2018 |
€57 |