Accumulated Losses at Date of Death

[wonko]

Has anyone got a definitive answer as to whether significant rental losses forward can transfer with the property to the estate/beneficiaries?

 

[Joe_90]

I would have thought no is the answer. There might be something available to a surviving spouse.
[broken link removed]

 

[wonko]

They are specific rules regarding S.23 type reliefs where the death has caused a clawback. No granted if the survived you would have no need for such specific provisions - but I'm just looking for something certain in black and white.

 

[Sophrosyne]

They are specific rules regarding S.23 type reliefs where the death has caused a clawback. No granted if the survived you would have no need for such specific provisions - but I'm just looking for something certain in black and white.

Open “A Guide to Section 23 Relief here (3rd PDF down) and see page 21, “Death of a claimant”.

 

[wonko]

This again relates to S.23 clawback situations. Not the case here. I'd imagine where they need to create a special relief to compensate for the liability suggests that the losses would not transfer otherwise. I'm just trying to get that confirmed

 

[Sophrosyne]

This again relates to S.23 clawback situations. Not the case here. I'd imagine where they need to create a special relief to compensate for the liability suggests that the losses would not transfer otherwise. I'm just trying to get that confirmed

My apologies, I understood you were enquiring about a section 23-type property.

Relief for rental losses is provided by TCA 1997, s 384.

The relief is allowable to the landlord and is to be carried forward and set against the landlord’s rental profits.

When people die, they cease to have income or hold possessions on the date of their death.

Therefore, rental losses incurred pre-death cannot be passed to the estate (which is a separate entity from the deceased landlord) or to his/her beneficiaries.

 

[wonko]

Great thanks - that was my understanding too - was just hoping I was wrong.