What to do with the proceeds of my house sale

Mac128

I have just sold my house and when I pay back everything I owe to creditors I will still be left with some money with which to buy another house.

But I am going to rent for a while until the right property comes along.

So where do I put the money in the meantime so it will still be there when I need it. I have read some of the threads which include burying it, but I am still confused as to what the best thing to do is.

All ideas welcome.

jimoc

Put it into a non-irish bank, rabo bank seems to get press here and elsewhere.

dotsman

Irish banks are the safest you will find at the moment, and giving the best rates.

You probably won't want to lock it up in any long-term deposit though, as you haven't decided what to do with it yet.

Joey the lips

Be careful how long your keeping it in the bank... You are liable for tax on it if not reused to buy a house or if kept to long...

Mac128

How long is too long?

stepbar

jimoc wrote: »

Put it into a non-irish bank, rabo bank seems to get press here and elsewhere.

Yes so that the Government have to draw down more funds from the IMF to prop up the banks. Clever... very clever :rolleyes:

Ali Babba

I'm in a similar situation and the last thing i'd do is put it in an Irish bank to be honest. Considering all the lies and u-turns that have been done by the government of late I just don't trust them anymore.

Thanos

Joey the lips wrote: »

Be careful how long your keeping it in the bank... You are liable for tax on it if not reused to buy a house or if kept to long...

I think you are only liable for tax on the interest made on the amount, not the amount itself. (As far as I know)

Kinetic^

Joey the lips wrote: »

Be careful how long your keeping it in the bank... You are liable for tax on it if not reused to buy a house or if kept to long...

What law is that under? I think you have it wrong but I'm open to correction.

iPlop

Kinetic^ wrote: »

What law is that under? I think you have it wrong but I'm open to correction.

Theres 27% DIRT tax on savings and deposits

Cookie_Monster

CGT may be payable, but unlikely

http://www.revenue.ie/en/tax/cgt/cgt-faqs.html#section4

murphym7

Cookie_Monster wrote: »

CGT may be payable, but unlikely

http://www.revenue.ie/en/tax/cgt/cgt-faqs.html#section4

I was thinking capital gains too - but if it was a primary residence they should be OK.

kmick

murphym7 wrote: »

I was thinking capital gains too - but if it was a primary residence they should be OK.

Nothing to do with private residence. For all intents and purposes the only tax is the 27% DIRT if its put on deposit/fixed term deposit and that is payable no matter where you put the money onshore or off.

murphym7

kmick wrote: »

Nothing to do with private residence. For all intents and purposes the only tax is the 27% DIRT if its put on deposit/fixed term deposit and that is payable no matter where you put the money onshore or off.

Yah it does, if the house is an investment property that was rented out and it was sold, any profits would be liable for Capital gains tax - I never mentioned DIRT which is completely seperate.

kmick

murphym7 wrote: »

Yah it does, if the house is an investment property that was rented out and it was sold, any profits would be liable for Capital gains tax - I never mentioned DIRT which is completely seperate.

There was no mention of an investment property.

Cookie_Monster

kmick wrote: »

There was no mention of an investment property.

your PPR is subject to CGT in certain case, such as if there is more than one acre of land with it, that part is not exempt... unlikely in most case I admit but still a possibility