Restriction on losses ?

B

Barry001

Guest
Hello,

If i have a rental property thats made historic losses and starts to make profits now because of the reduction in the interest deduction claim since 2009 is there any time limit on being able to use those historice losses for tax purposes or can they be carried forward indefinitely?
 
yes - according to Revenue's own guide to rental income. (form IT70) and more importantly it aks you this it on the self-assesment form 11 question 210 ("AMOUNT OF UNUSED LOSSES FROM PREVIOUS YEAR").
 
sorry -wasn't clear on indefinite time-limit.
My understanding and I have acted on this on revenue retunr s and never had a problem...

- yes losses can be c/f indefinitely
- you must start to use losses as soon as you make a profit (obviously carrying forward any loss balance ).
- losses cannot be carried back (unlike trading losses which can be carried back against profit in the last three years of a companys trading)

This is a tricky subject and rules can change - (even as I write this I wonder if there's a tax expert out there who can confirm or deny what i've said.)
 
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