UK Property

[salzuflen]

We have a UK property and because of massive repairs it made a loss in 2008.  Do we declare this loss on Form 2047 section VII?

Do the French tax office understand a minus figure equates to a loss or do we need to do something else?

 

Thanks

 

[Patf]

I've just completed our tax forms and have recorded the same thing on Form 2047 section VII - loss due to cost of repairs, and 2 months without a tenant. I've put a red ring around the minus sign. Don't know if it's right or not - I will ask when I take the forms in.

Hopefully when the loss is entered on the UK tax forms in Jan. we will get a small rebate from the IR.

 

[Hereford]

Why wait until January to do UK form?

[parsnips]

[quote user="salzuflen"]

We have a UK property and because of massive repairs it made a loss in 2008.  Do we declare this loss on Form 2047 section VII?

Do the French tax office understand a minus figure equates to a loss or do we need to do something else?

 

Thanks

 

[/quote]

Hi,

       As I see it you should put your rents in col.4; VII on 2047 , then any tax paid in col. 5 and the amount spent on repairs in col. 6,-----carrying down to the total column the repair costs will reduce the total to be carried over to 2042 TI to zero. This means that no rental income will be included in calculating your french tax rate. To carry over a negative figure , presumably hoping to get your french tax rate reduced , would ,in my opinion , be asking rather too much of the fisc's generosity.

[Patf]

[quote user="Hereford"]Why wait until January to do UK form?
[/quote]

I guess I put it off until the last minute because I don't like doing it. Final date for self-assessment is 31st Jan.

I took our forms to the french tax office today and the man said it was OK to enter a negative figure - said it was called a "déficit".

As our income is below the taxable limit in France even in a good year, it won't make any difference. It's the UK tax people I'm hoping for a refund from, not the french.