Selling House Tax

wotzgoingon

I only just realised that you are liable for tax when you sell a house. Is it that 33%?

If it is that is madness peoples hard earned cash and the government want to take a large cut.

Atlantic Dawn

Not when it's where you live.

holly_johnson

CGT is technically due on any asset you sell if you make a gain. However, an exemption is provided for your principal private residence. So if it is your home you are selling, and you never rented it out, there is no tax due. Investment properties are charged to CGT, as it is an asset rather than your home.

If its a rental or 2nd property you will pay 33% capital gains tax on any gain over €1,270.

If its your principal private residence there is no tax whatsoever (unless you lived elsewhere for a period of time while you owned the property).

herbalplants

https://www.boards.ie/discussion/2058276250/selling-house-tax

Don't you know 😉

Joke aside, the capital gain tax is not applicable on your principal private residence. So if you sell your home where you reside, you are fine.

inthehole1

If selling a second property which is been rented out, but is now worth less than originally paid for it years ago, does capital gains tax still come into play

The J Stands for Jay

https://www.boards.ie/discussion/comment/120012016#Comment_120012016

Yes, it still comes into play, but 33% of €0 is €0.

herbalplants

https://www.boards.ie/discussion/comment/120012163#Comment_120012163

Exactly

Large bottle small glass

https://www.boards.ie/discussion/comment/120012016#Comment_120012016

If you sell and make a loss, make sure to do a return of the loss.

In years to come, as long as you keep your returns up to date, you can use that loss as a way of offsetting any future gain.