Can I get Tax Relief for Foreign Investment losing money??

S

Ste2006

Registered User
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Hi All,

A quick question that i am sure is easy for those in the know,

A few years back i purchased a foreign Investment within the EU,

In the last two years things have not gone right and i have ended up paying out a lot of money on it so losing a lot of money

I am in full time emplyment here and pay PAYE tax,

Does anyone know am i entitled to off set some of my losses against the Tax I am paying here??

Any ideas would be much appreciated,

Thanks,
 
Rental is non existant so yes rental losses

Also Capital losses as it has devalued a lot but i suppose so has everywhere
 
Ste2006 said:
Rental is non existant so yes rental losses

Also Capital losses as it has devalued a lot but i suppose so has everywhere
Click to expand...

Unfortunately, you cannot offset these losses against your employment income.

Foreign rental income is assessed under what is known as 'Schedule D Case III', giving scope to offset foreign rental losses against other Case III income (e.g. UK source interest). Perhaps there's scope for you to move any savings you may have from products yielding deposit interest subject to DIRT (and therefore assessable under 'Case IV') to a product yielding income assessable under 'Case III'?

If we're talking about residential property, you should calculate your rental profit or loss based on Irish tax principles (e.g. only 75% of interest arising in respect of the purchase, improvement or repair of a property should be allowable).

You should also be mindful of your filing and payment obligations in the foreign jurisdiction.

And if you do at some point in the future crystalise a capital loss in relation to a property, the loss should be available to you for offset against any future capital gains.
 
Thanks for the reply again,

I have accountants in France so they take care of the french side of it for me but just thought i might be able to do something here,

Oh well,

Thanks again,
 
Fair enough,

Any reccomendations of a good accountant in Dublin who is used to dealing with foreign property and tax??
 
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