CGT

Dumb Juan

Hi,

I own a rental house with my ex husband (we are fully divorced), If I buy his share off him, this will trigger CGT liability for him.

I know on disposal we can deduct selling /legal costs. I bought the property originally (before marriage), so he has no purchase costs, therefore am I right to think he can't deduct any purchases costs when calculating CGT liability?

Thanks for your help.

nompere

https://www.boards.ie/discussion/2058429743/cgt

If you bought the property for (say) €200,000 plus costs of (say) €12,000 then the transfer to your husband after marriage was done at a figure which gave rise to neither a gain nor a loss. So, that's €106,000. And that's the cost figure for any subsequent disposal by him.

JVince

This is one for an accountant who will know this area.

But at a guess there would need to be a valuation of the property at the time the share was transferred to him.

Assets owned previously to marriage are not automatically split in a separation. So unless you actually added his name to the deeds, you likely still own the property outright and its more that it's value is within the assets of the marriage rather than the property itself

However if his name is on the deeds, then its the value at the date this took place that would likely be used for CGT.

But definitely one for an accountant