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Losses into partnership

  • 11-09-2018 4:47pm
    #1
    Closed Accounts Posts: 322 ✭✭


    Hi,
    If a sole trader has losses forward and enters a partnership can he retain losses from the sole trade to use against profits of his own several trade or is the partnership treated as a new entity and no carry forward of losses?


Comments

  • Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    New entity


  • Closed Accounts Posts: 322 ✭✭Heisenburg81




  • Registered Users, Registered Users 2 Posts: 10,760 ✭✭✭✭Marcusm


    New entity

    In most case, an Irish partnership will not constitute an entity! Where an individual carrying on a sole trade begins to carry on the same trade in partnership then that individual is not treated as having ceased the trade; ie no special terminal loss relief and the losses can be carried forward against his share of the partnership’s profits arising from that same trade.

    Whether and to what extent it constitutes the same trade is a question of fact.


  • Closed Accounts Posts: 322 ✭✭Heisenburg81


    Marcusm wrote: »
    In most case, an Irish partnership will not constitute an entity! Where an individual carrying on a sole trade begins to carry on the same trade in partnership then that individual is not treated as having ceased the trade; ie no special terminal loss relief and the losses can be carried forward against his share of the partnership’s profits arising from that same trade.

    Whether and to what extent it constitutes the same trade is a question of fact.

    Hard to argue it is not an entity however when separate VAT, PREM etc registration is required


  • Registered Users, Registered Users 2 Posts: 10,760 ✭✭✭✭Marcusm


    Hard to argue it is not an entity however when separate VAT, PREM etc registration is required

    It is settled law in Ireland (see Quigley) that an Irish partnership is not a legal entity nor a taxable person in its own right. In Irish commercial law, a partnership equally does not have separate legal personality distinct from the partners in the partnership.


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