V vf949 Registered User Messages 23 16 Aug 2016 #1 Hi, My wife bought an apartment in 2005 for €297k. Lived in it between 2005 and 2009. Had 1 room rented to tenant during this time. Rented out fully to tenants from 2010 to present. Rent is not covering mortgage so putting approx €400/month with rent to pay mortgage. Apartment currently worth approx €220k. If we sell the property is there any way that we can use the loss in value to offset paying any income taxes? Thanks.
Hi, My wife bought an apartment in 2005 for €297k. Lived in it between 2005 and 2009. Had 1 room rented to tenant during this time. Rented out fully to tenants from 2010 to present. Rent is not covering mortgage so putting approx €400/month with rent to pay mortgage. Apartment currently worth approx €220k. If we sell the property is there any way that we can use the loss in value to offset paying any income taxes? Thanks.
P Protocol Registered User Messages 4,304 16 Aug 2016 #2 No. A capital loss can be offset against other capital gains, but not against income.
Brendan Burgess Founder Messages 52,208 16 Aug 2016 #3 And just to be clear, if you sell it now the loss will be apportioned over the time it was not an investment. Home: 5 years ( 4 + 1) Investment: 7 years Allowable loss 5/12 Actual loss: €80k Allowable loss for CGT €33k (80 x 5/12) One of the odd things is that by holding on to it, any gain in value from today until it reaches €297k will be exempt from CGT. Brendan
And just to be clear, if you sell it now the loss will be apportioned over the time it was not an investment. Home: 5 years ( 4 + 1) Investment: 7 years Allowable loss 5/12 Actual loss: €80k Allowable loss for CGT €33k (80 x 5/12) One of the odd things is that by holding on to it, any gain in value from today until it reaches €297k will be exempt from CGT. Brendan
V vf949 Registered User Messages 23 16 Aug 2016 #4 Hi thanks for the replies guys great service as always!