Spouse utilising investment property losses

Hi all,

Myself and my wife curently have an investment property each, in our names only, bought before we got married.

I intend diposing of my property this year and expect to have a capital loss of circa €140k.

On the basis that we keep my wifes property for 15 years and on the assumption that she makes a gain on that disposal of €50k I am looking for the best way to tax plan now if this situation arises.

From reviewing Revenues website it would appear that if my wife gifts me the property in 15 years she will have a CGT liability at that time as it would need to be done at arms length etc.

My idea is for her to gift me the property next year after I dispose of mine this year and so she will then have a capital loss and so no liability to Revenue on the sale. Then in 15 years I dispose of the property and can utilise the losses on the sale from the property I am disposing now.

Does this make sense - is it legal etc?

Also the above is all based on the assumption that here property is in a gain situation in 15 years - it may not be!

Finally what is invloved with her gifting me the proerty. Does it need to be mortgage free or would the bank let her keep the mortgage in her name but assign the deed of the poperty to me?

Thanks for reading and I look forward to any advice you may have.

No need for the gifting etc.

Capital losses are transferable between spouses.

Thanks Gordon. I asked a friend before I posted and they said exactly what you said.

However I rang Revenue yesterday and they said because the properties are not in joint names that the losses cannot be transferred?

I could give you numerous examples of people receiving outrageous advice from Revenue.

Ignore what Revenue told you.

Hi Learner



It's teased out a bit more here.

Can a wife's capital losses be set against a husband's gains?

(Section 1028(3) is summarised in more straightforward English here [broken link removed])

Losses
If in a year of assessment one spouse has allowable losses which he/she cannot utilise because of an insufficiency of chargeable gains (from which those allowable losses would be deductible under section 31), the balance of the losses after being set off against that spouse’s gains (if any) can be offset against the other spouse’s gains in the year of assessment. This treatment does not operate for a year of assessment where either spouse makes an application, that this subsection (subsection 3) does not apply, on or before 1 April of the following year.

I had not realised that. I can see the ad in the Farmer's Journal.

Non drinking farmer, 40 years, light smoker. Would like to get in touch with sincere R.C. girls aged 30 to 40 with view to marriage. Must have GSOH and CGT losses available.

Many thanks Gordon and Brendan.