Capital gains and selling principal residence

kingdomfan

Hi all my friend has sold her house and is meeting with an account next week, but wants to gather as much information before meeting him as possible.

Here is her scenario,

Built house in early 90s and lived in it up until about 2015 when she moved abroad, she has rented it out for approximately last 5 years. She has just sold it for let's say a 100k profit. What stort of a capital gains bill is she looking at given it has mostly been her principal residence.

Thanks.

ari101

At a basic level, for a house owned for 30 years for example; rented for 5 years, PPR for 25 years: 100k gain - (25/30*100k) exemption = 16.7k less 1.3k annual exemption = 15.4k taxable gain @33% = 5.1k

Depending on the exact dates/amounts and the circumstance of the departure/rental it might be slightly different. Check out details and example here:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/principal-private-residence-ppr-relief.aspx

Marcusm

The last year is always treated as eligible for PPR relief so in the example above 4 years should be treated as non-qualifying rather than 5.