Sale of rental property

PGM

This should be a simple question, that I should know..

When selling a rental property, how should you treat the estate agent/ solicitor fees ie cost of selling it, do they have to go as a cost against sale proceeds?

It would be better as a cost against rental income, as capital allowances would cover the rest, but I don't think that'd be allowable?

deanshepherd

Yep, those are capital costs allowable against the profit on disposal. You can't claim them as a revenue expense against rental income.

PGM

Just the person!

Many thanks, I can finish my self assessment now

Gem7321

Remember costs of acquisition as well

PGM

Gem7321 wrote: »

Remember costs of acquisition as well

Well, it wasn't initially bought to rent out so I left them out. But capital allowances easily cover the profit, so luckily I don't need to worry about making too much...

Bluewednesday

Costs of acquisition are for the capital gain not the rental income so you did the right thing by leaving them out.

Gem7321

Sorry I misunderstood I thought you were asking in terms of completing the CGT calc

PGM

Bluewednesday wrote: »

Costs of acquisition are for the capital gain not the rental income so you did the right thing by leaving them out.

Gem7321 wrote: »

Sorry I misunderstood I thought you were asking in terms of completing the CGT calc

Sorry I'm confusing everyone. I'm doing both rental income and CGT calculation. Maybe I should be in acquisition costs. I was ignoring the acquisition costs because it wasn't initially bought to be rented out, does that matter at all?

T.C.

Don't forget to exclude the time that it was occupied by the owner ...if that was the case before it was rented out.

PGM

thankyou TC