Capital loss on sale of apartment

[guerngirl]

Hi all, my brother sold a property in 2021, he is currently preparing his tax return. He made a capital loss of 90k vs original purchase price on sale of the apartments. On the current tax return he is still calculating tax payable, I assume the loss on sale cannot offset any income tax payable? Can he include the fees he incurred to sell the property in the tax return as expenses? Thanks

 

[noproblem]

Did he rent the apartment and was it in Ireland? If so, he can use the expenses incurred in selling against the rental income tax.

 

[guerngirl]

Did he rent the apartment and was it in Ireland? If so, he can use the expenses incurred in selling against the rental income tax.

So similar to previous tax returns in that case, as yea he did rent it out. Can he offset solicitor fees etc charged on the sale of the apartment ?

 

[jpd]

Income tax and Capital Gains tax are two completely separate taxes.

Normally, selling expenses are allowed when calculating the capital gain or loss and are not allowed when calculating your income for income tax

All capital losses can be carried forward and set against future capital gains

 

[guerngirl]

Thank you, that really helps clarify.