No loss deductions
Question from Ricardo updated on 23rd December 2016:
I have two leasehold apartments within the Auckland CBD (relatively low value, $40-50k range). These were purchased purely for rental. During the course of my four year ownership, there have been ground rent reviews for each of these, which have resulted in a 2-3x rise in rent.
I have been told by the real estate agents that the expected price would be significant lower than what I paid for, sustaining a capital loss. Would I be able to claim back capital loss on sale of these apartments?
Our expert Mark Withers responded:
No, there is no deductions for loss on disposal of property purchased for investment - just as there is no capital gains tax on a profit.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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