capital allowances on loss?

[randomfool]

Was trying to do my investment property tax return online on ROS and it seems to me that you can only use the capital allowance to reduce a profit ...

The website it does not seem to let you enter a capital allowance if you have made made a loss on rent minus other deductibles ...

Am I right in thinking that this is how it works?

I thought you would be able to write off the capital allowances for that year regardless and therefore carry a larger loss forward.

Also so if you are unable to claim your capital allowance for this year, could you carry the capital allowance forward instead or not?

Would greatly appreciate an answer to this?

thanks

RF

 

[Guitarist]

You're correct, the return only deals with taxable income and if that's nil then that's all the Revenue are interested in. You need to keep a schedule of losses and unused capital allowances on your own file.

You can carry forward unused allowances but you need to be aware that proposals in the recent budget have changed the rules on the way carry forward losses/allowances can be used - this is a problem for the future and doesn't affect the 2010 return.

I'd suggest you bring your return to an accountant and ask him or her (and pay perhaps!?!) to review the return for you and check that you've computed the carry forward memo correctly.