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Calculating cgt query

  • 08-10-2017 6:35pm
    #1
    hawkelady
    Registered Users, Registered Users 2 Posts: 1,357 ✭✭✭


    Hi, I'm an "accidental landlord" and I'm thinking of selling my apt next year and if I give the figures could one of you roughly tell me how much cgt I will have to pay. I'll be getting my accountant to file returns but I'd like a rough estimate.

    I paid 175k (Irish pounds) for the apt in 2000. I'm hoping it will sell for €230/235k .. I lived in it for 3 years before I started renting it . I took a mortgage of 60k Irish pounds for the apt. When I moved to a house I took a top up loan of €80k to add to my new mortgage ( not sure if this is relevant at all, sorry). The bank advised me to do that ..

    Anyway , is there any other info I need to give or can anyone calculate how much I'll have to give to the revenue? I've no idea how much my solicitor fees cost btw

    Thanks


Comments

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


    Deduct the net cost (including expenses - typically your legal bils) from the net proceeds (again allowing for expenses like the lawyer and the auctioneer).

    That gives you the gain.

    Work out the period you lived in it, and add one year.

    That's about 4 years out of a total of 17. So 13/17ths of the gain is taxable. Work out that, take away €1270 and then take 33%. That's the tax. Mortgages and other loans don't feature in the calculations. If you ask your solicitor he'll probably know how much he charged you.

    I reckon the answer will be somewhere between €2,500 and €2,800.


  • #3
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    Should have said that you need to convert the Ir£ cost to €. That's division by .787564.

    So Ir£175,000 = €222,204.


  • #4
    Avatar MIA
    Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    Small amount of indexation due as well as bought in a time when it applied.

    Overall add in expenses and CGT should be negligible.


  • #5
    Avatar MIA
    Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    ^^^ Might have been covered already, last year considered as inhabited... unless rules changed.


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


    Avatar MIA wrote: »
    Small amount of indexation due as well as bought in a time when it applied.

    Overall add in expenses and CGT should be negligible.

    Silly me - this is, of course, correct. For a purchase in 2000 the indexation factor is either 1.144 or 1.193. Either number is more than enough to put the cost well over the proceeds, so there won't be any gain, nor any tax.

    I didn't forget the last year - that's why I said "work out the period you lived in it, and add one year"


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