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CGT on Inherited Property

  • 21-08-2017 2:58pm
    #1
    Shurwhynot
    Registered Users, Registered Users 2 Posts: 561 ✭✭✭


    My aunt & uncle inherited their parents home in 1989, and have now agreed a sale on it.

    They don't seem to have any documentation which shows a value at that time, so is it down to an auctioneer to come up with the value of the house in 1989 for CGT purposes?

    With regard deductions from the chargable amount, can they both claim the €1,270 exemption figure? I know that they can claim legal fees etc, but I'm just wondering what else can be put against the profit figure to get the tax liability down? My uncle would have done quite a bit of maintenance over the years - is this something that can be claimed for?


Comments

  • #2
    myshirt
    Registered Users, Registered Users 2 Posts: 5,245 ✭✭✭myshirt


    You are conflating and mixing up a few issues.

    Are the owners siblings? Who has lived in this house since 1989?


  • #3
    cruizer101
    Registered Users, Registered Users 2 Posts: 3,205 ✭✭✭cruizer101


    Were they both living in the house the whole time? If they inherited it from their parents the exemption is far greater than 1,270, these days it around 200k I think, no idea what figure was back then but was definitely higher.

    Probably need to get to a good tax accountant though to advise as not sure how would be valued if work done on it over the time they have been living there.


  • #4
    Shurwhynot
    Registered Users, Registered Users 2 Posts: 561 ✭✭✭Shurwhynot


    Neither were living in the house at any time. The owners are siblings yes. Nobody has lived in the house since 1989


  • #5
    myshirt
    Registered Users, Registered Users 2 Posts: 5,245 ✭✭✭myshirt


    Shurwhynot wrote: »
    Neither were living in the house at any time. The owners are siblings yes. Nobody has lived in the house since 1989

    Forms would have been filled in at the time assigning a transfer value to determine y/n did they owe any tax.

    Without complicating it for you, when they sell it will be Sales Proceeds less 'Deemed Transfer Value' = Gain.

    The First 1,270 of that gain is not taxable, the rest is.


    Few other things at play, but nothing overally complex here. A solicitor would be able to deal with it, you shouldn't need an accountant. Solicitor would refer you on if you did anyway.


  • #6
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    The deemed cost in 1989 is indexed at either 1.503 or 1.553 - depending on whether the acquisition date is on or before 5 April 1989 or after 5 April 1989.

    Don't forget that 1989 is pre-Euro so £50,000 (for example) becomes nearly Eur64,000 which is then Eur96,000 or Eur99,200 after indexation.


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