Losses into partnership

Heisenburg81

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?

Mr. Incognito

New entity

Heisenburg81

Mr. Incognito wrote: »

New entity

https://www.taxworld.ie/answers/carry-forward-of-losses-to-partnership/

Marcusm

Mr. Incognito wrote: »

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.

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

Marcusm

Heisenburg81 wrote: »

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.