Keep old apt (rent) or sell it?

G

Gaules

Registered User
Messages
13
I am at a dilemma!

I am moving to a new house, and I am not sure what is the best RE the existing apt I have..

RE tax there are some expenses I can claim - IT70

But RE capital gains I am not too sure how it works...

As far as I understand, If I dispose of the apartment within one year of it being my main residence, there will be no Capital Gains tax.

However, if I hold the property for more than 1 year, then the taxman looks at my total number of years of ownership and the total gain from the year I bought it.

My chargeable Capital Gain will be a fraction of this figure... and that fraction is the number of years I owned the property divided by the number of years that the property was my home.

example

If I sold the property in two years time...
I will have owned the property for 5 years
It was my home for 3 years
It was rented for 2 years

Question 1: then my chargeable taxable gain would be one fifth or two fifths of the total gain/profit?

Question 2: would the 1 year exemption after being my main residence, still applies if I rented the apt during that period?

I found this in the Revenue site, but is not too clear...

http://www.revenue.ie/leaflets/cgt1.pdf
 
You must log in or register to reply here.
Back
Top