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Sale of PPR and Rental Income

  • 31-07-2019 9:29am
    #1
    LFC Murphy
    Registered Users, Registered Users 2 Posts: 825 ✭✭✭


    Hi,

    My wife and I are jointly assessed and she sold her house which was our PPR in Dec 2018. There was an overall loss of €59000 on the property.

    I have a rental property and my question is, can I offset this loss against annual rental income returns?

    Thanks


Comments

  • #2
    Daxve
    Registered Users, Registered Users 2 Posts: 164 ✭✭Daxve


    Unfortunately the answer is no

    You can't set a capital loss and against rental income chargeable under Income Tax. They are separate taxes - capital losses can only be set against capital gains or they can be carried forward until there is a capital gain.

    But a capital loss on the sale of a PPR is not allowable in any event.

    Per Section 546(1)

    Where under the Capital Gains Tax Acts an asset is not a chargeable asset, no allowable loss shall accrue on its disposal.

    Per Section 604(3) - Disposal of a Principal Private Residence

    The gain shall not be a chargeable gain if the dwelling house or the part of a dwelling house has been occupied by the individual as his or her only or main residence throughout the period of ownership or throughout the period of ownership except for all or any part of the last 12 months of that period.

    As any gain made on the sale of a PPR is not a chargeable gain any loss that arises on the sale of PPR is not an allowable loss and cannot be used against another gain.


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