Can anyone help me roughly calculate my capital gains tax bill on the sale of my property?
I will be engaging an accountant to look over this for me and help with my allowable deductions but I'm keen to know the ball park figure.
Bought August 2014 - €210,000
Sold June 2022 - €300,000
Primary residence Aug 2014 - Jan 2020 (5 years 5 months or 65 months)
Rented Jan 2020 - June 2022 (2 years 5 months or 29months)
Allowable deductions (solicitors fees purchasing and selling, Estate agent fees etc) roughly calculated for simplicity sake - €10,000
Profit on sale €90,000 - €10,00 allowable deductions = €80,000 that should be taxable for cgt.
CGT is 33%
So the bit I'm struggling to get my head around is working out how much is taxable based on the years that it wasn't my primary residence.
Am I correct in saying that I only pay cgt proportionally for the period it was rented out?
So hear comes the back of the cigarette box calculations.
€80,000 ÷ 94 months (total ownership) x 29 months (period not primary residence) = €24,680
33% of 24,680 = €8144
Is my CGT bill likely €8144 or have a calculated this way off?
Your re close but if you’ve ever lived in it as a PPR the. The last 12 months are always treated as if they were PPR compliant even if rented out. On that basis the gain of 80k is time apportioned as to 17/94 meaning approx €14,500 is taxed at 33% subject to the annual exempt amount of €1,270 per owner. Meaning 14,500-1,270 = 13,230 @ 33% = 4366 roughly. You’re lucky you have a gain. I’m selling a house I bought in 2008 and it’s still standing a loss.
And to make the calculation of ppr as percise as possible is calculating it by the month the best way to do that? The only other way would be rounding up and down to years which would be way off.
Calculating by days would be the most percise
I've a further question on this.
As stated in opening post I owned the property from August 2014 - June 2022
To quote the revenues section on CGT relief
Any gains made on a property acquired between 7 December 2011 and 31 December 2014 are exempt from CGT. You will get full exemption providing that you:
So the 7 years relief would bring me up to August 2021. As indicated by previous poster the final year of ownership is always classified as ppr for cgt purposes.
So would this mean I have no cgt liability for disposing of this property? Or would I still have some liability pro rata for the last 10 months of ownership?
Of note it was rented out for the last 2.5 years and all income tax has been paid to date.
I will obviously be seeking some formal advice on this too.
You own the property more than 7 years so partial relief applies. This relief cannot be used in conjunction with PPR relief.
Get someone to calculate both options for you including PPR, full PPR releif may be available under certain circumstances (working abroad etc).
So you think I'll most likely have to pay cgt proportion on the last 10 months of ownership?