# soletrader loss against rental income bill



## dollypat (5 Nov 2008)

I set up pertime buisness in 2006, which pre trading loses aprox 10,000( course fees, expenses ). Have  private house rental tax bill for same year, can i offset the profit i made on house rent against loss from buisness. House not used for buisness.
Rental tax bill~4000, loss buisness~10,000 .does this cancel my rental income bill out?
Also payed paye for same year~ 8000 , am i due this back?
Have already got few conflicting opinions on this, would appreciate if could get clarity
Sectton 380 TCA97 states that :Losses incurred in a year of assesment may be deducted from any other income charegaable to tax in that year


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## simplyjoe (5 Nov 2008)

No you cannot offset the self employed loss against the rental income. You can however offset the self employed loss against your PAYE income. Note I said the loss against the income. This has the effect of reducing your paye income and therefore also your tax. MAY!!! be a refund. If you do not wish to employ an agent I suggest that you visit your local tax office. You will need to fill in a form 11 and on that form you will need to indicate that you wish to offset the loss.


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## BaileyMc (6 Nov 2008)

Hi,

A self-employed loss can be offset against your total income (same as medical expenses) i.e. reducing your taxable income. So on the basis that you made a self-employed loss of €10,000 you can offset the €4,000 taxable rental profit. The remaining €6,000 of the loss can then be offset against your employment income. On the basis that the PAYE was correctly calculated and deducted you should then be entitled to a refund.

You would have to file a Form 11 to do this.

Hope this helps!

Bailey

Edited to add that on the basis that you have not filed an income tax return for 2006 at this stage you would probably be facing a surcharge for a late return.  I would suggest that you talk to an accountant to determine what to do next.


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## Mini3277 (7 Nov 2008)

Yes you can offset the loss incurred in the year of assessment of a Schedule D Case 1/2 activity against all income. If the loss is not offset ainst other income in the year of assessment then it can be carry forward, indefinitely, and offset against profit from the *same* Case 1/2 activity in future years.  

*The lose may only be offset against all Income in the year of assessment.* There are a few exceptions to this rule, one of which being Heritage House losses (Section 482 or 486 I think). A Heritage House loss may be offset against all income in the year of assessment and also the year immediately subsequent to the year of assessment 

The loss must be claimed within two years. So for example if you made a loss in 2004 and haven't yet submitted a 2004 tax return then you cannot claim the loss now. 

Please note that some pre-trading expenses are not allowed for the purpose of calculating your profit/loss. 

Also please note that college fees do not form part of a Schedule D Case 1/2 computation. In order to claim relief for college fees you must claim the specific tax credit. The college course must be on the list of approved courses. Relief for college fees is given at 20%.


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