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Capital Gains Tax

  • 04-01-2015 2:05pm
    #1
    rosie_c
    Registered Users, Registered Users 2 Posts: 16 ✭


    Hi guys,
    Hope somebody can answer this for me - my father has a sale agreed on a house in Dublin which will be liable for capital gains on about 200k. He has another house he has been trying to sell in Leitrim for over a year which will be making a loss of well over 200k - he bought for 370 and it's market value is now about 120-140. He hasn't been able to get an answer to this question to date - do both houses have to sell in the same calendar year to write the loss of one off against the gain of the other? Or does the Leitrim house have to sell before the Dublin house.
    I'd really appreciate your expertise. Thanks so much.


Comments

  • #2
    Rightwing
    Closed Accounts Posts: 8,101 ✭✭✭Rightwing


    rosie_c wrote: »
    Hi guys,
    Hope somebody can answer this for me - my father has a sale agreed on a house in Dublin which will be liable for capital gains on about 200k. He has another house he has been trying to sell in Leitrim for over a year which will be making a loss of well over 200k - he bought for 370 and it's market value is now about 120-140. He hasn't been able to get an answer to this question to date - do both houses have to sell in the same calendar year to write the loss of one off against the gain of the other? Or does the Leitrim house have to sell before the Dublin house.
    I'd really appreciate your expertise. Thanks so much.

    Why not contact Revenue and ask them ?

    I'd imagine the same calendar year, but not 100% certain on that.


  • #3
    sock puppet
    Registered Users, Registered Users 2 Posts: 4,586 ✭✭✭sock puppet


    in general a loss can either be used to offset gains in the current year or carried forward against gains in future years. it could only be carried back if your father died in the year he sold his leitrim property. unrealised losses can't be offset against tax.

    maybe someome with more in depth knowledge will correct but unless he sells the leitrim property in the same year or prior to selling the dublin property he'll be liable to cgt on the dublin property, unless the dublin house is his private residence which I'm presuming it isn't.


  • #4
    Permabear
    Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.


  • #5
    Farmer Pudsey
    Registered Users, Registered Users 2 Posts: 6,326 ✭✭✭Farmer Pudsey


    rosie_c wrote: »
    Hi guys,
    Hope somebody can answer this for me - my father has a sale agreed on a house in Dublin which will be liable for capital gains on about 200k. He has another house he has been trying to sell in Leitrim for over a year which will be making a loss of well over 200k - he bought for 370 and it's market value is now about 120-140. He hasn't been able to get an answer to this question to date - do both houses have to sell in the same calendar year to write the loss of one off against the gain of the other? Or does the Leitrim house have to sell before the Dublin house.
    I'd really appreciate your expertise. Thanks so much.
    sock puppet wrote: »
    in general a loss can either be used to offset gains in the current year or carried forward against gains in future years. it could only be carried back if your father died in the year he sold his leitrim property. unrealised losses can't be offset against tax.

    maybe someome with more in depth knowledge will correct but unless he sells the leitrim property in the same year or prior to selling the dublin property he'll be liable to cgt on the dublin property, unless the dublin house is his private residence which I'm presuming it isn't.


    Rosie my understanding is the same as sockpuppets. A discussion with any accountant will confirm. Capital Gains is not applicable to principle private residance. Capital gains/capital aquisition tax is at the rate of 33% I think so is a substancial factor in sale of any assets. The the case you outline the bill will be in the order of 60K+. Get an accountant to advice on same.


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