Hi there,
I bought a house in 2001 with my girlfriend for €222000. The house was lived in as a private family home until 2004. In 2004 the house was valued at €325,000 and I bought my girlfriends share and everything was put into my name. The house has been rented from 2004 until now except for a period in between of 2 years.
I’m trying to work out if I am liable for capital gains tax if I sold the house as it is now worth €300,000 – 320,000.
From the Revenue website I was able to figure out the following if I was to sell:
Disposal Consideration: 320,000
Less incidental costs of sale 10,000
Consideration after costs 310,000
Cost adjusted for inflation 222,000 * 1.193 = 264846
Capital gain: 45154
Period of ownership = 168 months
Period of Occupation (including last 12 months of ownership) 72 months
45154 x 72/168 = 19352
Capital gain amended for PPR relief 45154 – 19352 = 25802
Less personal exemption 1270
Chargable gain 24532
Tax Due @ 33% = 8095
The other scenario would be very simple in that if I take the valuation that I bought the house outright in 2004 for 325,000 and sold it now for 320,000 there is no capital gain and therefore no charge.
Do you know which one I would have to use and if they are correct?
Also if the residence was used again for a certain number of years does it become a private residence again without capital gains liability?
Thanks in advance,
Sven.
I bought a house in 2001 with my girlfriend for €222000. The house was lived in as a private family home until 2004. In 2004 the house was valued at €325,000 and I bought my girlfriends share and everything was put into my name. The house has been rented from 2004 until now except for a period in between of 2 years.
I’m trying to work out if I am liable for capital gains tax if I sold the house as it is now worth €300,000 – 320,000.
From the Revenue website I was able to figure out the following if I was to sell:
Disposal Consideration: 320,000
Less incidental costs of sale 10,000
Consideration after costs 310,000
Cost adjusted for inflation 222,000 * 1.193 = 264846
Capital gain: 45154
Period of ownership = 168 months
Period of Occupation (including last 12 months of ownership) 72 months
45154 x 72/168 = 19352
Capital gain amended for PPR relief 45154 – 19352 = 25802
Less personal exemption 1270
Chargable gain 24532
Tax Due @ 33% = 8095
The other scenario would be very simple in that if I take the valuation that I bought the house outright in 2004 for 325,000 and sold it now for 320,000 there is no capital gain and therefore no charge.
Do you know which one I would have to use and if they are correct?
Also if the residence was used again for a certain number of years does it become a private residence again without capital gains liability?
Thanks in advance,
Sven.