Unused Section 23 Rural Renewal Allowance - advice appreciated

[circularrd]

I purchased a Section 23 property in Co. Leitrim in 2004. I have not used any of the S23 tax relief of approx €120K. If I sell the property, can the purchaser benefit from the unused tax relief ie. can it be carried forward or transferred to him/her?

 

[Dermot]

The Section 23 benefit has expired after 10 years as far as the new purchaser is concerned.

 

[landlord]

The Section 23 benefit has expired after 10 years as far as the new purchaser is concerned.

I thought I had read a few years ago that the 10 year countdown only starts when some of the relief is used but I could be wrong. Coincidently it was only a year or two ago I was looking for one of these properties myself to shelter some of my rental tax liability.

 

[circularrd]

Thank you all for such prompt responses..some food for thought! I didn't think there was any carry forward possibilities but similar to Landlord I had a vague idea that the clock started on first drawdown of the S.23 relief..probably wishful thinking but I'll certainly enquire further with Revenue. Good suggestion Toledo..hadn't thought of it..too far away I'm afraid.

 

[Ravima]

relief last for 10 years. If you never claimed it, its gone. If you sold it within the 10 years without claiming it, the new owner would then have 10 years to claim it.

However, its now gone.

 

[Joe_90]

The allowances last for 10 years from the first letting if you never let the property it could potentially still have allowances on it.

 

[circularrd]

Again thanks everybody for taking the time to reply, much appreciated. Joe_90 I should mention that I did have the property let from an early stage so no go.