Michael Howell
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Pre letting costs : Allowable as Revenue Expense deductions or Not?
I understand that if you purchase a property in a run down state then renovate it prior to starting to let it out then the cost would be classed as a capital expense and not revenue. But what if you purchased the house 20 years ago in good condition at the time and lived in for the past 20 years but after 20 years of use the kitchen, which had when the house was purchased looked "as new", started to look tired so you replaced the units and then immediately started to let the house out. The kitchen was just restored similar to its original state as it was originally when first purchased without improving it. Could the cost of the kitchen refurbishment be classed as an allowable repair?