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Capital Gains Tax

  • 19-02-2021 1:15pm
    #1
    Barbs80
    Registered Users Posts: 2 ✭


    Hi all just wondering if someone can help or advise on the following regarding liability for capital gains tax.

    I bought a plot of land with a derilict property on same back in 2009 with a view to building. At the time of planning with my architect on his advise, a family member transferred a small piece of land to me which is now attached to my original site so I therefore own 2 folios . I am now looking at selling both folios I know I will be liable to CGT on the gain if it sells after all allowable expenses are deducted etc . My question is the small piece of land which I obtained from a family member now attached to the overall site, has that added value to the overall site value ? Can this be seen as a claimable expense which adds value to the asset? Is there any other allowable expenses to be deducted from the overall liability? Thanks in advance


Comments

  • #2
    namenotavailablE
    Registered Users Posts: 59,547 ✭✭✭✭namenotavailablE


    For 'connected party/gift' scenarios as you describe, the value of the land at the date of transfer by your relative is what is taken by you at that date. So, you can deduct whatever that would have been from the sales proceeds now arising on the sale

    I suspect but can't say -someone might be along to clarify- that you might have to do a separate calculation for the disposal of the gifted land and the purchased land, allocating the total sales proceeds between each folio as they might be viewed as 2 separate assets rather than a single asset. It could be worth getting professional advice on this.

    Other deductible expenses on the sale would be auctioneer fees or legal fees relating to the disposal.

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  • #3
    Barbs80
    Registered Users Posts: 2 ✭Barbs80


    Thanks so much for your advice . I was thinking that also that I may have to file two separate returns . I will need to speak with a tax accountant on same .

    Can you claim allowable expenses on both purchase and at sale of land ? Can you claim auctioneers fees too ? Thank you


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