Selling land

Dara J

I am just wondering can anyone help me. I am selling land and wondering about the CGT 33% tax Etc. Land was worth 20k when my dad gave it to me and now selling at 90k and wondering can anyone tell me the procedure for paying the least amount of tax etc TIA

whomitconcerns

Talk to an accountant

Dara J

I have spoken to an accountant but felt he hadnt a clue and Revenue arent taking calls.

Was awaiting to see if anyone recommended one and get ideas to go forward.
Thanks.

DubCount

Then I think you need to speak to a different accountant.

enrique66_35

If you were unhappy with the accountant you contacted, try another but be warned that their time is not free so be prepared to formally engage them to advise you and pay for the service. Alternatively the solicitor handling the sale may be able to assist you with filing the CGT return but again this will be at a cost which may be deductible (explained below).

In simple terms the CGT is charged on the gain (i.e. the difference between what you sell for less what you paid). In this case you didn't pay anything but there would still have been a deemed value (you indicate €20K) which is your base cost for CGT purposes.

If you sell for €90K then the gain is €90K - selling costs (solicitor etc -assumed €2K) - €20K (cost) - €1,270 (annual exemption) = €66,730
CGT payable at 33% = €22,021.

This is all very rough based on a few assumptions but just to give you an idea of the amounts involved. Have a read of Revenue guidance at https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx

One final thing to note - be careful around the dates of disposal (sale) - if occurring in Dec you have to pay by 31 Jan, rest of year payment is due by following Dec 15th (& return filed subsequently).

Dara J

enrique66_35 Thanks for your information.