Allowable loss in RPGT TPC – General Q6

What is allowable loss in RPGT?

When a property is sold, real property gains tax is a taxation on the gains for the transaction. On the other hand, if a property is sold with a loss, this loss is allowable loss.

Take for example,

Disposal price = RM550,000

Acquisition price = RM600,000

Allowable loss = RM550,000 - RM600,000 = RM50,000.

What do you do with this allowable loss in RPGT? This loss can be used to offset other transactions in the same year, or carried forward to the future year.

Take for example,

Property A = Gains RM80,000

Property B = Loss RM50,000

Net Gains = RM80,000 - RM50,000 = RM30,000.

This gains will be levied with RPGT.

Hence, if you have one property which is sold at a loss, plan for this offset when you can make profits with other properties. This is to take advantage of the available means under the RPGT Act, 1976.