Residents' income tax - how to declare a property sale at a loss?
Helpful member
I wonder who has an answer to this one? I bought a house in 2005 for €210,000. I hope to sell it shortly for €135,000. Who says property is a good investment??!! But that's not really my question.
We already know that the buyer will probably be called upon to pay a complementario or better known as "bargain hunters' tax" but that's his problem.
Now I go to do my 2019 residents' tax return in June 2020 and I declare a loss of €75,000. If I am investigated I can prove the figures but I don't think that is of any interest to our fiscal friends here, is it? - and I'm done for fraud!?
So I think again and over declare, say €190,000 hoping that the loss of a mere €20,000 will be overlooked.
Which would you do? Be truthful and get done for evasion OR tell a lie to avoid investigation.
Look forward to the tax brains on the forum replies!