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Expat and Capital gains tax

  • 20-04-2017 7:12pm
    #1
    kilns
    Registered Users, Registered Users 2 Posts: 3,525 ✭✭✭


    Hopefully someome can clarify something for me. I bought my apartment back in 2007 and in 2011 moved abroad for work where i have been ever since. The apartment was lived in by a family member and i was continuing to pay the mortgage along with rent they would pay me.

    Now i am looking to sell the apartment but it will be at 33% loss on what i originally paid for it. Would i be liable for capital gains tax on the sale as i was not resident in the country despite the loss on the sale?


Comments

  • #2
    Atlantic Dawn
    Registered Users, Registered Users 2 Posts: 84,733 ✭✭✭✭Atlantic Dawn
    M


    If there's a loss on the purchase price you won't be liable as there's no gain. The rental income you received would be liable to tax.


  • #3
    Geuze
    Registered Users, Registered Users 2 Posts: 14,033 ✭✭✭✭Geuze


    As the name of the tax implies, it's a tax on gains.


  • #4
    kilns
    Registered Users, Registered Users 2 Posts: 3,525 ✭✭✭kilns


    Thanks, the bigger concern was the fact that I was not tax resident for a few years in Ireland and if selling the asset would be effected by it


  • #5
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    On disposal your solicitor will have to get a letter of no audit from local tax office. A cgt comp and return to be filed for the current period, no payment assuming a loss.

    The letter, effectively states that revenue will not select the case for audit, it also releases the solicitor to distribute surplus funds to you being non resident.

    If there are any tax issues sort them out, otherwise the letter can take a few weeks to arrive.


  • #6
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    If Irish land is sold it is liable to CGT regardless of the residence of the owner.


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  • #7
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    kilns wrote: »
    Hopefully someome can clarify something for me. I bought my apartment back in 2007 and in 2011 moved abroad for work where i have been ever since. The apartment was lived in by a family member and i was continuing to pay the mortgage along with rent they would pay me.

    Now i am looking to sell the apartment but it will be at 33% loss on what i originally paid for it. Would i be liable for capital gains tax on the sale as i was not resident in the country despite the loss on the sale?

    Capital gains tax is on the gain.

    Make sure to properly declare it so you will be able to use the losses against any future gains.


  • #8
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    Mr. Incognito wrote: »
    If Irish land is sold it is liable to CGT regardless of the residence of the owner.

    It is a specified asset, S.29(3)tca. Thus always liable to CGT in the State, irrespective of the residence of the owner.

    Read that as a question...🙈


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