capital losses for our previous primary home turned rental

[sm7940333]

Following on from a recent post, I am hoping you can help clarify the calculation of the capital losses for our previous primary home turned rental property.

Timelines: We lived in a property for 6 years & 10 months, then rented it out for 8 years & 5 months before selling it. So, it was rented 55% of the time we owned the house.

Capital Losses: We purchased the house at the worst time possible - peak 2006! We also did spend heavily on renovating the house as well as adding an extension (costs captured under Enhancement Expenses). Details in the table below:

Selling Price:​	€ 299,999​
Less Original Purchase Price:​	€ 345,000​
Less Purchase Expenses:​	€ 13,924​
Less Selling Expenses:​	€ 8,996​
Less Enhancement Expenses:​	€ 55,476​
Capital Losses:​	-€ 123,398​

Can I claim to full capital loss? Or is the capital loss proportional to the time as a rental? So 55% of the €123k = €68k.

Any other considerations?

Thanks in advance.

 

[Gordon Gekko]

You’re deemed to have lived there for an extra 12 months, so you need to adjust your percentage, but other than that your approach is broadly correct.

 

[sm7940333]

Thanks Gordon.

So I round up the 6 yr & 10 months to 7 yr & 10. Do I round down the 8 years & 5 months then by 12 months?

 

[NoRegretsCoyote]

Less Enhancement Expenses:​

€ 55,476​

When were the enhancements carried out? When you lived in the property or when it was let?

I can't find the precise reference, and am subject to correction here, but if the improvement works were carried out before the period of rental then I don't think they can be used to increase the loss.