Property pages - no profit

Property pages - no profit

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he rents out a house at no profit (tenant pays what owner pays in mortgage interest) so there is no profit.

We have been filing tax returns for 3 years for him (he runs his own engineering ltd) and did not know about it.

Do we need to amend past returns if he did not make a profit on his rental?

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By MDK45
15th Nov 2013 07:09

Profit has nothing to do with it, I suspect then he could be bringing forwarding losses to use up?

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By Euan MacLennan
15th Nov 2013 09:59

Need to amend

If there is no profit from the letting, you would not need to notify HMRC that tax was chargeable and thus, sign up for self-assessment tax returns in the first place, but as the client is already in self-assessment, the tax returns you have filed are incomplete and ought to be amended.

However, as there is no additional tax payable, I would just amend the 2011/12 and 2012/13 tax returns which are still in date.

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By SE_Confused
15th Nov 2013 10:11

there are no losses to carry forward either and i would rather avoid redoing his last two tax returns if it is not really necessary

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By MDK45
16th Nov 2013 10:19

Why are there no losses to bring forward? Surely there's maintenance, water rates, 10% wear and tear he can claim, all this would breakeven to zero every year? What am I missing here?

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