First bit of advice - get an accountant!
Secondly, read what posters above have said and then reread! You're asking more questions and its already answered.
Thirdly, the Revenue are also known to get their sums wrong (esp with CGT/CAT) but I think in this case they are attributing an extra year for you - reread Clubman's example above - he also takes that into account in his example.
Fourthly, you need to give us more details. Who owns the house - was it transferred under a marriage/separation agreement - does your ex-partner own a share or is entitled to proceeds ?
Re costs, your accountant as a basic rule will look at all rental expenditure and any costs that generally weren't allowed against rental profits are allowed as deductions - revenue versus capital chestnut of an argument here essentially - but thats only a general rule.
I did read the answers...just dont understand them entirely.
Where does the extra year come from ?
What method of calculation do I use as the formulae above seem to blend the overall gains made into the time the house was rented - I should not have any liability for gains made during the time it was my PPR.
The house is currently in joint names and is about to be transferred into my sole name. The revenue web site is unclear as to the CGT treatment. My view is that this is a disposal of an asset as part of a separation agreement. However the section of the website says that there is no liability for CGT in the first year and after the first year there is no liability if the asset is transferred as part of a 'deed of separation'.
From the Revenue web site..
http://www.revenue.ie/en/personal/circumstances/separation-divorce.html#section15
Years following Separation
In the years following a separation further assets may be transferred between spouses without giving rise to any capital gains tax liability. Where this relief applies* each asset will be treated as being acquired at original cost and at the same time as the spouse who originally acquired it.
This exemption does not apply to assets which form or are intended to form part of the trading stock of a trade.
Any disposals from one spouse to the other which takes place after the year of separation or outside of a divorce/court order * are treated as disposals at full market value as if between strangers, and capital gains tax is calculated in the normal way.
* This relief applies where the assets are the subject of an order obtained under one of the following:
- Part II of the Judicial Separation and Family Law Reform Act
- Part II of the Family Law Act 1995
- Family Law (Divorce Act) 1996
- Deed of Separation
So to add another question - when does an informal separation agreement become a 'deed' of separation.
If I in fact have a deed of separation then I dont see any liability to CGT.
Sorry to make this longwinded.
As for the Accountant - last time I took their advice it cost me almost 10K in a missed tax liability so you understand why I am looking for multiple sources of clarification.