gettin all my receipts etc ready to hand over to tax consultant to make the usual tax returns for the year gone by but as usual i'm trying to get a rough idea of the sums for myself and this year is a little unusual so any help appreciated.
At the beginning of 2007 I had 2 investment properties. I put one up for sale in September and it sold in January 2008. I know I have until the 31st of October to pay the capital gains tax ( roughly €18,000 ) so i've stuck that in a lump sum account until then because I may as well have the benefit of the interest on it for 9 months. The question I'm uncear about is this.
The property that was sold was rented out and occupied until September 2007 when it went on the market. From then onwards it was empty and awaiting viewing and sale so I personally paid the mortgage for oct/nov/dec of 2007. How is the mortgage interest for those 3 months treated ??? is it included in the total allowable mortgage interest payments against the rent received or do I only claim for the portion of the year that it was actualy let / availabale for let. i.e is it 12 months interest that is allowable or only 9 ?
If its only the 9 can the other 3 be in any way offset against the CGT liability as an expense that was necessaryily incurred in the presentation and sale of the property.
May look like a stupid question but any advice appreciated in advance of presenting my figures to an accontant in the next few weeks
Thanks
At the beginning of 2007 I had 2 investment properties. I put one up for sale in September and it sold in January 2008. I know I have until the 31st of October to pay the capital gains tax ( roughly €18,000 ) so i've stuck that in a lump sum account until then because I may as well have the benefit of the interest on it for 9 months. The question I'm uncear about is this.
The property that was sold was rented out and occupied until September 2007 when it went on the market. From then onwards it was empty and awaiting viewing and sale so I personally paid the mortgage for oct/nov/dec of 2007. How is the mortgage interest for those 3 months treated ??? is it included in the total allowable mortgage interest payments against the rent received or do I only claim for the portion of the year that it was actualy let / availabale for let. i.e is it 12 months interest that is allowable or only 9 ?
If its only the 9 can the other 3 be in any way offset against the CGT liability as an expense that was necessaryily incurred in the presentation and sale of the property.
May look like a stupid question but any advice appreciated in advance of presenting my figures to an accontant in the next few weeks
Thanks