I had 2 rental properties on which i made tax returns every year.
Property one makes a modest profit while property two made a modest loss which has accumulated over a 4 year period. In January 2008 I sold property two, calculated the Capital Gains tax and paid it in October as required.
I am now putting the tax returns for 2008 together and my question is this. Do the accumulated losses of the property I sold now "die" ( for want of a better word) or can they be used to offset the tax liability on the profits on the other property ?? ( or used for anything else for that matter)
I suspect they can't be usd for anything else but I thought I'd ask just in case
Many thanks
D
Property one makes a modest profit while property two made a modest loss which has accumulated over a 4 year period. In January 2008 I sold property two, calculated the Capital Gains tax and paid it in October as required.
I am now putting the tax returns for 2008 together and my question is this. Do the accumulated losses of the property I sold now "die" ( for want of a better word) or can they be used to offset the tax liability on the profits on the other property ?? ( or used for anything else for that matter)
I suspect they can't be usd for anything else but I thought I'd ask just in case
Many thanks
D