Unrealised Capital Loss

Can an unrelaised Capital Loss be offset against a real Capital Gain for the calculation of Capital Gains tax to be paid.
What I have in mind here is supposing a person buys 2 properties for €500k. each one of which he sells for €750k. thereby making a gain of €250k. The other he has not sold but the value has reduced to, say, €300k. If he gats a professional valuation of the "impaired" property can he then offset the notional loss against the actual gain when calculating the net gain for CGT purposes??

Short answer, No, you must first realise the loss by disposing of the property.

ubiquitous said:

Short answer, No, you must first realise the loss by disposing of the property.

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Actually, I would have to disagree with the point above. I was able to do this before with shares that I had not sold. If I remember my tax advisor correctly he used the phrase negligible value claim??. Don't ask me the ins and outs of it but I think that's what it is.

Anyway perhaps worth speak to a tax advisor or accountant on this. I don't think it would work for u based on what you say below because my shares, even though I stupidly held onto them, were on the floor compared to the price I paid for them so I think the drop in value needs to be much bigger than this. But check it out. I used a tax advisor myself but an accountant may be able to help you also.

hope this helps? Keep us posted

mickeyg said:

Can an unrelaised Capital Loss be offset against a real Capital Gain for the calculation of Capital Gains tax to be paid.
What I have in mind here is supposing a person buys 2 properties for €500k. each one of which he sells for €750k. thereby making a gain of €250k. The other he has not sold but the value has reduced to, say, €300k. If he gats a professional valuation of the "impaired" property can he then offset the notional loss against the actual gain when calculating the net gain for CGT purposes??

Click to expand...

mickeyg said:

Can an unrelaised Capital Loss be offset against a real Capital Gain for the calculation of Capital Gains tax to be paid.
What I have in mind here is supposing a person buys 2 properties for €500k. each one of which he sells for €750k. thereby making a gain of €250k. The other he has not sold but the value has reduced to, say, €300k. If he gats a professional valuation of the "impaired" property can he then offset the notional loss against the actual gain when calculating the net gain for CGT purposes??

Click to expand...

Is this like a property version of this?

Getting CGT loss relief on unsold shares

Sounds implausible in the context of the example outlined. €300K valuation on an asset originally acquired for €500K is a 40% drop in value but hardly worthless!

Negligible value means worth next to nothing.
A property is not likely to be of negligible value, so a claim would not be allowed.

Negligible value in terms of share value is not uncommon however.