Capital Gains (loss)

L

lopin

Registered User
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58
All,

Im currently selling a property, I going to make a loss of about 60K

My question is, how long can I use this loss, when I sell a property in the future and make a gain

Thanks
 
Given the very high house prices now, it's surprising to hear that somebody is selling at a capital loss.
 
Im not taking the risk of re-renting, tenants have too much rights, no money in the business
 
One more question

The property I will be selling and making gain is in Spain

When I make capital gain return, is this done in Ireland or Spain of in both countries
 
The loss (assuming it's on a non-Spanish property) won't be relevant to your Spanish CGT position, if or when you make a gain on a property there.

So while it'll reduce your exposure to Irish CGT, you may still owe tax in Spain in accordance with their CGT rules.
 
Thanks for your reply

If I'm reading this right

If I make a gain of 200k I'll pay 19% to Spanish Government

On the Irish part, I'll write off all the the Irish property loss against the Spanish gain

Thanks
 
lopin said:
One more question

The property I will be selling and making gain is in Spain

When I make capital gain return, is this done in Ireland or Spain of in both countries
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In the first post you refer to a capital loss.

Now it's a capital gain.

I'm confused.

Sorry, I think I see it now, the second property, which may be sold in the future, is in Spain.
 
Clarification

I'll make 60k loss, selling Irish property

I'll make 200k profit selling Spanish property
 
In the future then, you expect to have a 200k taxable gain in Spain, and a (200k - 60k =) 140k taxable gain in Ireland.

Whatever Spanish CGT you pay (I believe they have a sliding scale of increasing rates as the size of gain increases), will be available as a credit against your Irish CGT liability.

So if things play out as you predict, you'd be paying at least €46k (€140k x 33%), possibly slightly more, if the Spanish CGT bill works out higher.
 
So that would mean I would pay Spain 38k (19% of 200k)

I would pay Ireland on 140k gain at 14% (less amount paid to Spain) €19,600

Total CGT to pay €57 600

Am I reading this right?

Thanks for all your replies
 
lopin said:
So that would mean I would pay Spain 38k (19% of 200k)

I would pay Ireland on 140k gain at 14% (less amount paid to Spain) €19,600

Total CGT to pay €57 600

Am I reading this right?

Thanks for all your replies
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No.

Your Irish tax liability is 33% of 140k (your gain of 200k less your allowable loss of 60k). That's about 46k. You can deduct from that, the amount of any final Spanish CGT liability you have paid.

You're estimating it at 38k but I think it'll be closer to 44k. Either way, if it's less than 46k, you just take it off the 46k and owe the balance to Irish Revenue.

So your total tax payable will be 46k, unless Spanish CGT rates increase and you pay more than 46k there, in which case you'd owe nothing here.
 
torblednam said:
No.

Your Irish tax liability is 33% of 140k (your gain of 200k less your allowable loss of 60k). That's about 46k. You can deduct from that, the amount of any final Spanish CGT liability you have paid.

You're estimating it at 38k but I think it'll be closer to 44k. Either way, if it's less than 46k, you just take it off the 46k and owe the balance to Irish Revenue.

So your total tax payable will be 46k, unless Spanish CGT rates increase and you pay more than 46k there, in which case you'd owe nothing here.
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Okay,I get it now. Thanks a million
 
Gordon Gekko said:
Why wouldn’t it be allowed?
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I'm no longer answering questions from you here after your behaviour towards me previously, particularly on the last thread which had to be shut down after your intervention.

If what I said above is incorrect - and it may well be given that I wrote it on a Saturday while out shopping - feel free to correct it.
 
T McGibney said:
If what I said above is incorrect - and it may well be given that I wrote it on a Saturday while out shopping - feel free to correct it.
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Yes, you’re completely incorrect. The loss on the Irish property can be used against the ‘Irish gain’ in respect of the Spanish property, but not against the ‘Spanish gain’.
 
For such cross-jurisdictional tax queries you might need to seek professional advice regardless of whatever feedback you get on a forum like this.
 
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