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Capital Gains tax

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  • 01-03-2021 9:54pm
    #1
    AckwelFoley
    Registered Users Posts: 12,556 ✭✭✭✭


    Hello

    Query regarding capital gains.

    Site purchased in 2000,.house built in 2006 and lived in owner occupier for 4 years and subsequently rented out.

    Mortgage still on the property.

    If the house is sold for 250k what capital gains tax is liable.

    I understand the site purchase price and cost of building is allowable against it, bit how is this proven as there isn't any receipts after that length of time and particularly when there wasn't an intention of ever selling it

    What happens usually in this instance?


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  • Options
    #2
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    First, try to establish if there will be a gain on disposal.

    If sold at 250k, how might that compare to site cost + build cost?

    Second, the mortgage is not relevant.

    Third, surely the owner of the house has some idea of the build costs? They would have paid maybe 200k or more to a builder? There will be transactions on bank statements, etc.

    Fourth, any gain can be apportioned by the time spent as PPR vs time spent as not PPR.


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