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CGT, what deductions?

  • 17-02-2018 4:33am
    #1
    bacon?
    Registered Users, Registered Users 2 Posts: 784 ✭✭✭


    I've done some research online, and read old posts here, but hope someone can clear up some stuff, not even sure if it's worth selling now, with the world's 3rd highest CGT.

    Can I add the following to the purchase price?
    Legal fees
    Upgrade, rennovation costs
    Anything else?

    Bought 13 years ago, primary residence for 5 years, any relief apply here?

    I read you're not taxed on the first, 1250Euro, is that per year it's not your residence, so 8 x 1250? Or just 1250?

    Bought with a friend, it's still his primary residence.


Comments

  • #2
    Peregrinus
    Registered Users, Registered Users 2 Posts: 26,998 ✭✭✭✭Peregrinus


    bacon? wrote: »
    I've done some research online, and read old posts here, but hope someone can clear up some stuff, not even sure if it's worth selling now, with the world's 3rd highest CGT.
    Just be thankful you're not living in one of the countries that has no separate capital gains tax, and just taxes capital gains at the marginal rate of income tax. ;)
    bacon? wrote: »
    Can I add the following to the purchase price?
    Legal fees
    Upgrade, rennovation costs
    Anything else?
    Not much else, but if you have incurred other expenditure that you think might or ought to be deductible, tell us what it is, and we'll have a stab at whether it might be deductible.
    bacon? wrote: »
    Bought 13 years ago, primary residence for 5 years, any relief apply here?
    Yes. 5/13ths of the gain should be exempt.
    bacon? wrote: »
    I read you're not taxed on the first, 1250Euro .
    . .
    It's 1,270 euro.
    bacon? wrote: »
    . . . is that per year it's not your residence, so 8 x 1250? Or just 1250?
    Just 1,270. It's unrelated to how long you have held the asset.
    bacon? wrote: »
    Bought with a friend, it's still his primary residence.
    He should be grand, so.


  • #3
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    The base cost the the original price paid plus stamp duty and legal fees. Enhancement expenditure is also allowed.

    The sales proceeds less legal and auctioneer.

    The period that it was your Principal Private Residence plus 1 year is exempt so let’s say cost 250k sales proceeds 300k profit 50k Divide by 2 €25,000

    Profit €25,000
    Less PPR
    €25,000 x (5+1) / 13 = €11,538

    Taxable 13,342 - €1,270 = €12,192 x 33% = €4,023 tax payable


  • #4
    bacon?
    Registered Users, Registered Users 2 Posts: 784 ✭✭✭bacon?


    Thanks guys, great advice.


  • #5
    bacon?
    Registered Users, Registered Users 2 Posts: 784 ✭✭✭bacon?


    So, for Enhancement expenditure, this can include, 

    [font=Open Sans, Arial, Helvetica, sans-serif]Furniture
    Carpets
    Appliances
    New Heating
    Painting
    [/font]
    Over the course of the properties lifetime?


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