Selling rental property

[vf949]

Hi,

My wife bought an apartment in 2005 for €297k.

Lived in it between 2005 and 2009. Had 1 room rented to tenant during this time.

Rented out fully to tenants from 2010 to present. Rent is not covering mortgage so putting approx €400/month with rent to pay mortgage.

Apartment currently worth approx €220k.

If we sell the property is there any way that we can use the loss in value to offset paying any income taxes?

Thanks.

 

[Protocol]

No.

A capital loss can be offset against other capital gains, but not against income.

 

[Brendan Burgess]

And just to be clear, if you sell it now the loss will be apportioned over the time it was not an investment.

Home: 5 years ( 4 + 1)
Investment: 7 years
Allowable loss 5/12

Actual loss: €80k
Allowable loss for CGT €33k (80 x 5/12)

One of the odd things is that by holding on to it, any gain in value from today until it reaches €297k will be exempt from CGT.

Brendan

 

[vf949]

Hi thanks for the replies guys great service as always!