If a person has 3 section 23 properties, each purchased in a different year, and they need to sell one.
The purchase of these properties generated a loss each year which were brought forward.
In the intervening years some of the losses were used against rental profits but there are still some unused losses.
The one being sold is less than 10 years old so the losses utilised are clawed back. But, can anyone tell me how you decide what losses utilised apply to that property rather than any other?
If they are brought forward in a pool do you assume they are used at the same rate each year, or do you assume that you use the losses from the first property first?
Any help would be appreciated.
The purchase of these properties generated a loss each year which were brought forward.
In the intervening years some of the losses were used against rental profits but there are still some unused losses.
The one being sold is less than 10 years old so the losses utilised are clawed back. But, can anyone tell me how you decide what losses utilised apply to that property rather than any other?
If they are brought forward in a pool do you assume they are used at the same rate each year, or do you assume that you use the losses from the first property first?
Any help would be appreciated.
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