Utilisation of losses on rental property

Linto

Hi,
We bought an apartment in 07, lived in it for 3 years and have been renting it out since. We now want to sell it.
Q) the house is currently ~€100k in negative equity and we're very likely to make a similar size loss on it when we sell. Can I use this losses to off set any potential taxable gains from the sale of some shares I own? (Hoping to sell shares this year that would give rise to a similar size gain)

Any advice would be super helpful.

CIARAN_BOYLE

Rental losses are offsetable against rental income.

The loss on sale is offsetable against capital income.

scheister

some of the rental loss will not be usable. As it was a ppr for 3 years that part of loss cannot be used. Bought in 07 sold 2018 so roughly 3/11 of the loss will be disallowed. But the balance can be used against the shares

Linto

scheister wrote: »

some of the rental loss will not be usable. As it was a ppr for 3 years that part of loss cannot be used. Bought in 07 sold 2018 so roughly 3/11 of the loss will be disallowed. But the balance can be used against the shares

Super helpful, thank you!

Geuze

Just to note of course, that the mortgage and any negative equity is not relevant when calculating the capital loss.

Calahonda52

Linto wrote: »

Hi,
We bought an apartment in 07, lived in it for 3 years and have been renting it out since. We now want to sell it.
Q) the house is currently ~€100k in negative equity and we're very likely to make a similar size loss on it when we sell. Can I use this losses to off set any potential taxable gains from the sale of some shares I own? (Hoping to sell shares this year that would give rise to a similar size gain)

Any advice would be super helpful.

The capital losses can be carried forward and need to be used first, even before your 1,270 annual allowance so maybe drip sell the shares unless u need the mula:

Linto

Geuze wrote: »

Just to note of course, that the mortgage and any negative equity is not relevant when calculating the capital loss.

And is there a formula I can use to estimate the capital loss?

Calahonda52

Linto wrote: »

And is there a formula I can use to estimate the capital loss?

see page 12 here
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-07-03.pdf

it deal with gains but same idea