Loss on Foreign Rental Income (ROS)

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Perplexed

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Amount entered here cannot exceed amount of "Net Profit on Foreign Rents" less amount of "Capital Allowances" and "Losses"

While attempting to do my Tax Return this keeps flashing up and will not allow me to continue.

I own two properties. One in Berlin and one in Budapest. I have had no tax liability in Germany but the system in Hungary does not allow one to offset costs (it's based on a % as opposed to actual costs). My apartment needed a lot of work last year (painting, work on windows, boiler etc) I still had to pay tax of €259 but Irish system keeps telling me this is incorrect.

I know I'm not entitled to a refund from Irish Revenue for Foreign Lossses but am trying to fill in correct figures! Do I just leave it out and save it up to put in losses next year? Help would be greatly appreciated as this is driving me crazy!!
 
i have a place in Budapest also and when claiming my capital allowances in my hungarian tax i was told that you are allowed very little as opposed to claiming for it in Ireland . so i claimed everything from painting work on the apartment and doing extra stuff to it in my hungarian tax and i claimed for my capital allowances from the irish revenue i don't know whether this helps you or not
 
Thanks Seanieboy for your response. It's while claiming my legitimate expenses on my Irish tax return that I'm coming up with the loss and the system won't allow then that I've paid the tax in Hungary! It's not a lot really so I'm just going to let it pass...
I'm assuming that as I'm not allowed an offset for losses in Foreign Propety it doesn't really matter. I won't be liable to pay tax here anyway as it's a loss and not a profit!
 
Perplexed said:
Thanks Seanieboy for your response. It's while claiming my legitimate expenses on my Irish tax return that I'm coming up with the loss and the system won't allow then that I've paid the tax in Hungary! It's not a lot really so I'm just going to let it pass...
I'm assuming that as I'm not allowed an offset for losses in Foreign Propety it doesn't really matter. I won't be liable to pay tax here anyway as it's a loss and not a profit!
Click to expand...

It sounds like you're saying that you're trying to take a credit on your Irish Form 11 for foreign tax paid (in Hungary)?

You can only take a credit for such tax against Irish tax on the same income source. As you said the tax rules in Hungary meant that you paid tax there even though there's a loss for Irish Income Tax purposes.

Therefore for the year in question you've no Irish tax liability on it, and no credit can be (or is needed to be) credited against your Irish liability. Unfortunately you can't add the Hungarian tax onto the amount of your loss to be carried forward (as it's not an expense per sé but a tax credit), but you can carry the loss forward for use against any future profits from foreign rental property.

Hope that makes sense!
 
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