Setting a loss on a commercial property against a gain on a residential investment

[Brendan Burgess]

If I own two commercial properties as follows

Rent Property A: 50k -
Interest 20k
Rental profit 30k

Rent Property B: 30k
Interest : 50k
Rental loss- -20k

Am I right in saying that the two are combined, so that my Rental profit for the year is €10k?

Does it matter if Property A is a residential mortgage?

I presume that the figures are just adjusted as follows:

Rent Property A: 50k -
Interest 15k (75% of 20k)
Rental profit 35k

The revised rental profit for tax purposes is not €15k

I had some vague notion that setting losses on commercial property against profits on residential property was not very efficient, but it doesn't seem to matter?

 

[Arch2]

Re: Setting a loss on a commercial property against a gain on a residential investmen

Agreed. It should make no difference mixing commercial and residential as all Case V.

If one property was not Irish then offcourse you could not offset as one would be Case V and the other Case III

 

[Brendan Burgess]

Re: Setting a loss on a commercial property against a gain on a residential investmen

Thanks Arch

I had not been aware of the Overseas Property issues, but it does not arise in this case.

Brendan