Selling my house but thinking of moving abroad. Am i ?

hiho1967

Ive been trying to sell my house last 18 months so i can move to oz for some work thou im thinking of just going now but i want to kno wwhere i stand concerning the sale. If i move and rent my house out, will i be liable for tax when selling it seeing as its not my main residence anymore.

Ive even been considering renting a smaller place here in ireland if i dont move and renting my own house out so i can generate some income for myself but like above, when i eventually do get a sale, will i have to pay any tax on the sale.

Ive been told that id be liable to CPT but i thought id pop in here to see where i stand before i make any rash decisions

dearg lady

http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf
see pages 15/16 for details on principal private residence. Of course, if you are very far into negative equity, then it';s unlikely to be an issue anytime soon anyway! (silver lining..)

hiho1967

Thanks for that lady but im still clueless,lol. Also i forgot to mention that i own my house outright.

Victor

Essentially you would be taxed on the profit you made on the sale of the house, but only on the years that you weren't living there.

So, if you moved out today and sold next year:

Purchase price €100,000
Sale price €200,000
Profit €100,000
CGT rate 30%
CGT €30,000
Purchase date 2003
Sale date 2013
Years occupied 10
Years occupied as PPR 9
Years rented out 1
Tax due €30,000 x (1/10) = €3,000

there are certain allowances of gains you can make each year before tehy are taxable and revenue tends to deal in whole years.

hiho1967

Victor wrote: »

Essentially you would be taxed on the profit you made on the sale of the house, but only on the years that you weren't living there.

So, if you moved out today and sold next year:

Purchase price €100,000
Sale price €200,000
Profit €100,000
CGT rate 30%
CGT €30,000
Purchase date 2003
Sale date 2013
Years occupied 10
Years occupied as PPR 9
Years rented out 1
Tax due €30,000 x (1/10) = €3,000

there are certain allowances of gains you can make each year before tehy are taxable and revenue tends to deal in whole years.

I built this house myself and dont even know how much ive spent to be honest. You see it took me 5/6 years to finish it because i was buying bits here and there and also 2nd hand kitchen etc..

It would be really hard for me to work out how much i spent on building it now thou everything was on the cheap and i also had alot of help from friends and family.

StillWaters

hiho1967 wrote: »

I built this house myself and dont even know how much ive spent to be honest. You see it took me 5/6 years to finish it because i was buying bits here and there and also 2nd hand kitchen etc..

It would be really hard for me to work out how much i spent on building it now thou everything was on the cheap and i also had alot of help from friends and family.

You would be crucified for tax as a LL if you have no mortgage. Also if you have no reciepts for work done, you are better off selling whilst it's still your PPR. If you have no mortgage, just lower the price til it sells, and use the cash to head off.

hiho1967

StillWaters wrote: »

You would be crucified for tax as a LL if you have no mortgage. Also if you have no reciepts for work done, you are better off selling whilst it's still your PPR. If you have no mortgage, just lower the price til it sells, and use the cash to head off.

I think ill just stay put then because have to much to lose out this way if i rent out.

hiho1967

Just bumping to ask that if i where to move away for work and leave the house as it is with not renting it out, would i still be liable for tax seeing as im not living in it when it sells.

Ray Palmer

StillWaters wrote: »

You would be crucified for tax as a LL if you have no mortgage. Also if you have no reciepts for work done, you are better off selling whilst it's still your PPR. If you have no mortgage, just lower the price til it sells, and use the cash to head off.

You wouldn't be crucified. You pay tax on the income like any other.
Receipt for materials is fine.
Just do your accounts and figure out the costs.