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capital gains on House

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  • 29-11-2021 6:28pm
    #1
    DESFITZGERALD1964
    Registered Users Posts: 2 ✭


    I got married two years ago and moved from my house into my wife's house. I now want to sell my own original house, Am I liable for capital gains on the house as it is no longer my principal house and if so is it possible to calculate the same.

    Thanks in advance

    Tagged:


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    #2
    cnocbui
    Registered Users Posts: 19,803 ✭✭✭✭cnocbui


    AFAIK you have 12 months from moving out to selling the house in order to get the exemption.

    In typical Revenue fashion, this period is way too short and out of step with the realities of how disfunctional the Irish property market, banking and legal systems are. @ years should be the absolute minimum.

    You might want to give serious consideration to moving back in and moving all your banking, governemnt, Revenue and utility account postal addresses to the property and wait a year before selling it and moving back to the other house.

    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-07-03.pdf



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    #3
    Bold Abdu
    Registered Users Posts: 212 ✭✭Bold Abdu


    https://www.boards.ie/discussion/comment/118241196#Comment_118241196

    That may be a lot of hassle for an undetermined CGT liability....and unnecessary too.



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    #4
    cnocbui
    Registered Users Posts: 19,803 ✭✭✭✭cnocbui


    That's something only you can decide.



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    #5
    ShelbyInc
    Registered Users Posts: 29 ✭ShelbyInc


    You'll be liable to pay capital gains tax on a portion of the gain you realize from the disposal of your home. You can claim partial PPR and the calc will be: the chargeable gain on the house * (periods of actual and deemed occupation)/ period of ownership. This portion of the gain will be exempt from CGT with the balance chargeable.


    Chargeable gain of house =

    Consideration received

    Less costs of sale (legal fees etc)

    = Net consideration

    Less

    Base cost of house - cost paid by seller for the property, adjusted for inflation where relevant.

    Plus enhancement(capital improvements) expenditure with respect to property, adjusted for inflation where relevant

    plus ancillary costs to acquire the property originally, adjusted for inflation where relevant

    = chargeable gain



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    #6
    DESFITZGERALD1964
    Registered Users Posts: 2 ✭DESFITZGERALD1964


    Thanks, Everyone, for your comments and advice, I think it looks like a smile and payout, but it does seem a little unfair to face the full hit, but hey. ho



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