Case V losses forward - Elect not to use?

Baby01032012

Hi,
If someone has Case V losses forward from prior years. Could they elect not to offset/deferr them against Case V profits in the current year? The reason would be so that they can then offset substantial medical expenses (nursing home fees @ higher rate) against their income. Otherwise the health expense benefit is lost if no income to offset. Is this possible?

gerrybbadd

Baby01032012 wrote: »

Hi,
If someone has Case V losses forward from prior years. Could they elect not to offset/deferr them against Case V profits in the current year? The reason would be so that they can then offset substantial medical expenses (nursing home fees @ higher rate) against their income. Otherwise the health expense benefit is lost if no income to offset. Is this possible?

Rental income?

You can carry the loss forward indefinitely. It doesn't have to be offset against other income

Baby01032012

Thanks Gerry, but if you have Case V rental income do you not HAVE TO set off any Case V losses in the current year before carrying them forward to future years? Ideally, I dont want to offset in current year so i have a taxable income that i can offset medical expenses against...

gerrybbadd

Baby01032012 wrote: »

Thanks Gerry, but if you have Case V rental income do you not HAVE TO set off any Case V losses in the current year before carrying them forward to future years? Ideally, I dont want to offset in current year so i have a taxable income that i can offset medical expenses against...

Exactly. You can carry the loss forward.

Ciaran

http://www.irishstatutebook.ie/eli/1997/act/39/section/384/enacted/en/html

(3) Any relief under this section shall be given as far as possible from the assessment for the first subsequent year of assessment and, in so far as it cannot be so given, from the assessment for the next year of assessment and so on.

That reads to me as if you have to use the losses in the first available year.

Lockedout2

Current year Case V profits and losses are aggregated to compute the profit/loss.

Losses forward are deducted from the first available profits.

Baby01032012

Thanks thats what i thought. So if i have Case V profits I have to apply the Case V losses forward against these profits. I can not ignore the profit and select to carry them forward to future years without first setting them against this years profits.