Rental income and CGT liability

W

Westgolf

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Hi all,

We, (Mrs. Westgolf and I) have a rental property on which I do a form 11 return each year. Thanks to the years of low rents in the bust era I have losses carried forward to put against this income. This year (2019) I also sold a property which I had inherited in 2017 on the death of my mother. This will require a return of capital gains. My question is this, can I use some of the losses forward to also offset against some of the CGT liability ?

All advice and suggestions welcome.

Westgolf
 
Hi Red Onion,

Accept that the two items are under two differening headings but what I was wondering was if I have surplus losses forward - in excess of that needed for my rental income offset. My thinking was to declare losses over and above that which would cancel my rental liability and this would wind up as a refund. Further on in the same form I would be declaring my CGT return and would expect that the refund due from the rental side would be offset against the liability on the CGT side ?

Apologies for not explaining it better initially,
Hope this effort is clearer.

The losses forward arises from a rental property which went from bringing in €800 a month in the good years to €300 a month during the recession but with no commensurate drop in my costs of ownership.

Westgolf.
 
The losses from the rental properties can only be offset against future income from rented properties. You do not get a refund for your loses but they are carried forward indefinitely to be offset against any future rental income profits.

They can not be used to offset CGT of any kinds
 
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