Selling rental property loss and CGT

mr_cochise

Hi folks,
appreciate in your input on this in advance.

In summary,
wife bought a house a number of years ago for E197500.
After living in it for a few years, she moved out and rented out the house. Everything above board re RTB and revenue.
Form 12 is returned every year and as she is mainly a paye, tax is paid by way of tax credit adjustments.

Anyway, she is now considering selling the house, which would only sell for about E130000.

Would I be right in thinking that the CGT loss would result in a favourable tax credit adjustment?

Is the stamp duty situation OK? No clawback applicable?

mr_cochise

Augeo wrote: »

Is the stamp duty situation OK? No clawback applicable?

First time buyer in 2008, so I don't think there was stamp duty paid and did not rent out in first 5 years, therefore exempt in terms of stamp duty.

Happy4all

mr_cochise wrote: »

Hi folks,
appreciate in your input on this in advance.

In summary,
wife bought a house a number of years ago for E197500.
After living in it for a few years, she moved out and rented out the house. Everything above board re RTB and revenue.
Form 12 is returned every year and as she is mainly a paye, tax is paid by way of tax credit adjustments.

Anyway, she is now considering selling the house, which would only sell for about E130000.

Would I be right in thinking that the CGT loss would result in a favourable tax credit adjustment?

No tax credit adjustment as such. The loss can be carried forward to use against any future gains.

PPR relief will apply when calculating loss

OO7FITZY

Folks

following lots of threads so appreciate if I you can tell me I understand this correctly:

property purchased for 300k 10 years ago as a PPR which was rented out for the last 5 years is sold today for 300k there is no CGT to pay as no gain has been made?

black & white

I'm in a similar situation so thank you for the info

Geuze

https://www.boards.ie/discussion/comment/120095502#Comment_120095502

Correct, if there's no capital gain, then there's no CGT to pay!!

Geuze

https://www.boards.ie/discussion/2058044786/selling-rental-property-loss-and-cgt

No, you'd be wrong.

CGT and income tax are totally separate.

A capital loss can not be applied against income tax.

OO7FITZY

https://www.boards.ie/discussion/comment/120096596#Comment_120096596

thx - had assumed there could be an issue but mistake I made and I think others make is confusing income from rent (which is already heavily taxed each year) and capital gain on the asset which are two separate things