Help understanding capital gains tax

Irishchick

Hello everyone I'm just looking for some information. I've looked on revenue and citizens advice and I can't make heads or tails of it.

My grandad died in 2004 and left me his house. I want to sell it and I was just wondering if I will be liable for CGT and how it is calculated.

One site said you don't have to pay it on assets received from death. Does this mean I will not be liable?

dogsears

Irishchick wrote: »

Hello everyone I'm just looking for some information. I've looked on revenue and citizens advice and I can't make heads or tails of it.

My grandad died in 2004 and left me his house. I want to sell it and I was just wondering if I will be liable for CGT and how it is calculated.

One site said you don't have to pay it on assets received from death. Does this mean I will not be liable?

You may be liable on any increase in value since you got it in 2004. If you used it as your main home you might be able to avail of "Principal Private Residence' Relief - this could reduce the taxable gain to Nil. If you didn't and were e.g. renting it out, your gain will be taxed at 33%. You can deduct the value in 2004 and any related costs of sale etc. There should be something about how to do the calculations in the stickies or on the Revenue website.

Irishchick

dogsears wrote: »

You may be liable on any increase in value since you got it in 2004. If you used it as your main home you might be able to avail of "Principal Private Residence' Relief - this could reduce the taxable gain to Nil. If you didn't and were e.g. renting it out, your gain will be taxed at 33%. You can deduct the value in 2004 and any related costs of sale etc. There should be something about how to do the calculations in the stickies or on the Revenue website.

Thank you for replying. How do you prove principal residency?

one more question. He died in 2004 but the will was not probated until last year. So the valuation go by when he died or when I had he house transferred into my name?

Thanks again

dogsears

Irishchick wrote: »

Thank you for replying. How do you prove principal residency?

one more question. He died in 2004 but the will was not probated until last year. So the valuation go by when he died or when I had he house transferred into my name?

Thanks again

OK - It sounds like there are complications. I think you should probably talk to an adviser - tax adviser or possibly a Solicitor.

Re principal residence - were you actually living there? If so you'll have no problem showing that if you're asked.

Irishchick

dogsears wrote: »

OK - It sounds like there are complications. I think you should probably talk to an adviser - tax adviser or possibly a Solicitor.

Re principal residence - were you actually living there? If so you'll have no problem showing that if you're asked.

Not really a complication. Just wondering if the valuation comes from the day of death or the day the will is probated?

I don't know that's why I'm asking.

Kristopherus

Irishchick wrote: »

Not really a complication. Just wondering if the valuation comes from the day of death or the day the will is probated?

I don't know that's why I'm asking.

Well, if it took 8 years for probate to issue, that indicates some level if difficulty/complication. Who lived in the house since 2004?

Irishchick

Kristopherus wrote: »

Well, if it took 8 years for probate to issue, that indicates some level if difficulty/complication. Who lived in the house since 2004?

It didn't take 8 years just I had to be a certain age and didn't have the fees available for a solicitor to be able to do it earlier.

So it it from the date of probation or date of death please?

Pawwed Rig

Irishchick wrote: »

Not really a complication. Just wondering if the valuation comes from the day of death or the day the will is probated?

I don't know that's why I'm asking.

It depends and there are way too many variables to advise you properly. You need to talk to a tax advisor.

howardmarks

Irishchick wrote: »

It didn't take 8 years just I had to be a certain age and didn't have the fees available for a solicitor to be able to do it earlier.

So it it from the date of probation or date of death please?

Google....????

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

Half way down. Assets valued at MV on date of death.

Pawwed Rig

howardmarks wrote: »

Half way down. Assets valued at MV on date of death.

That is not always the case.

Lockedout2

Pawwed Rig wrote: »

That is not always the case.

Agree. The OP needs to get professional advice.

They may have an exposure to Capital Acquisitions Tax on the gift and potentially Capital Gains Tax on a disposal.

Who was the executor of the Grandfathers estate?

Pawwed Rig

Lockedout2 wrote: »

They may have an exposure to Capital Acquisitions Tax on the gift and potentially Capital Gains Tax on a disposal.

Or Income Tax during the probate period

barneystinson

Pawwed Rig wrote: »

That is not always the case.

In what circumstances would a disponer, who acquired an asset on the death of the previous owner, have a base cost other than MV at date of death?

Doesn't section 573 provide the basis for the deemed acquisition at MV at date of death, regardless of when the asset actually passes into the hands of the beneficiary under the will...?

Lockedout2

barneystinson wrote: »

In what circumstances would a disponer, who acquired an asset on the death of the previous owner, have a base cost other than MV at date of death?

I'd love to know the answer to the OPs query.

The grandfather died 8 years ago and probate was not extracted. So presumable no CAT was paid and the transfer never took place.

As the transfer never took place has the OP an interest in the property. If granted now does that create a valuation date? Or does the creation of a fixed trust (mention of an age) create a charge on the trustees?

Mr. Incognito

Property threads are banned.

For good reason.

Speak to a solicitor