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Capital gains tax on house purchase 2014

  • 23-12-2017 6:11am
    #1
    gambithh
    Registered Users, Registered Users 2 Posts: 220 ✭✭


    I have purchased a property in 2014 that is currently rented out.I had originally an idea to hold on to it for 7 years and then sell allowing me to avoid paying capital gains tax.

    I now understand the time limit has been reduced to 4 years (ie next year)

    Can anyone tell me what implications are if i dont sell in the short term and perhaps sell in 5 -7 years time will i be CGT exempt?

    The property has more than doubled in value since i bought it but on the other hand its its earning me x3 times the mortgage in rental income currently and i may be wiser to hold on to it long term.

    Apologies if this has been asked before.

    Any advise welcome.


Comments

  • #2
    Samuel T. Cogley
    Registered Users, Registered Users 2 Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    gambithh wrote: »
    I have purchased a property in 2014 that is currently rented out.I had originally an idea to hold on to it for 7 years and then sell allowing me to avoid paying capital gains tax.

    I now understand the time limit has been reduced to 4 years (ie next year)

    Can anyone tell me what implications are if i dont sell in the short term and perhaps sell in 5 -7 years time will i be CGT exempt?

    The property has more than doubled in value since i bought it but on the other hand its its earning me x3 times the mortgage in rental income currently and i may be wiser to hold on to it long term.

    Apologies if this has been asked before.

    Any advise welcome.

    You can still hold onto it to the 7 year limit the 4 years is just an option (or 5 or 6).


  • #3
    IamCait
    Registered Users, Registered Users 2 Posts: 38 ✭IamCait


    gambithh wrote: »
    I have purchased a property in 2014 that is currently rented out.I had originally an idea to hold on to it for 7 years and then sell allowing me to avoid paying capital gains tax.

    I now understand the time limit has been reduced to 4 years (ie next year)

    Can anyone tell me what implications are if i dont sell in the short term and perhaps sell in 5 -7 years time will i be CGT exempt?

    The property has more than doubled in value since i bought it but on the other hand its its earning me x3 times the mortgage in rental income currently and i may be wiser to hold on to it long term.

    Apologies if this has been asked before.

    Any advise welcome.

    I’m in the same boat as you, I recently only found out about this rule being introduced that brought the 7 years to 4 years. I too am wondering what the best thing to do is. To be honest your money is only worth as much as the current market has to offer. I’m thinking about selling my 2 bed and and getting a one bed to rent out instead. That way I have roughly the same rental income roughly €300-400 in the difference but have a large lump sum of cash in the bank. Other than buying property, you can enjoy all that extra profit you made. Personally I feel the property market will stablise come end of 2018 so selling between now and then might not be a bad idea.


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