loss on sale of property

c98bf0ca

Hi,

My wife and I are in the process of selling a property which was a self-build back in the good old celtic tiger days on a site my wife was gifted from her parents. At the time the property was professionally valued at €450k (for the bank) but unfortunately, the market currently dictates that the property will likely sell for in and around the €250k mark. What I'm wondering is, that because it is a self build valued at time of construction rather than having a market value from purchase, will we be able to carry the theoretical loss of €200k forward to use against future gains on property sales/gifts? If we can carry forward, what do we need to do to register this loss with Revenue (what documentation required?)

Thanks.

CIARAN_BOYLE

Your loss is your loss against the construction cost. IE if it cost you 350k to build (including deemed value for cat on gift) then your loss is 100K. 
The professional value means nothing and has no relevance.
Also if the property was your ppr at then ppr relief applies to both gains and losses.
For your sake I hope you have evidence of what the property cost you as I know of a few cases where the person that built the house got screwed as they didn't keep evidence.

c98bf0ca

Thanks for this info. What kind of evidence do we need? Would the mortgage that was taken out to build house suffice (for cost of build) or would we need every invoice to back up. Property was built over 10 years ago so some of these may be missing.