Allowable deductions against capital gains/loss

dakra51

Registered User
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I am calculating the net gain following the sale of a holiday home and am deducting legal and estate agents fees for sale and legal fees for purchase. Can I also deduct the cost of fitted kitchen and bathroom fittings which were additional to the purchase price?

Also for a second hand home can stamp duty be deducted?
 
AFAIK the fitted kitchen and bathroom would still have to be in the house to be deductible - if they have been replaced since they wouldn't qualify.
 
Yes they are the original fittings, but were additional to the purchase price. I assume the white goods, freezer, washing machine and dishwasher cannot be included?
 
No, white goods etc wouldn’t count.

The original kitchen wouldn’t need to be still there.

For example, I could spend €25k on a new kitchen in 2005 and again in 2020.
 
No, white goods etc wouldn’t count.

The original kitchen wouldn’t need to be still there.

For example, I could spend €25k on a new kitchen in 2005 and again in 2020.

You could, but it won't necessarily all be deductible.

Section 552 allows
"expenditure which adds to the value of the asset and which is reflected in the state or nature of the asset at the time of disposal"

On that basis, the kitchen from 2005, to the extent that it's been pulled out and replaced in 2020, won't be deductible.

Strictly speaking.
 
You could, but it won't necessarily all be deductible.

Section 552 allows
"expenditure which adds to the value of the asset and which is reflected in the state or nature of the asset at the time of disposal"

On that basis, the kitchen from 2005, to the extent that it's been pulled out and replaced in 2020, won't be deductible.

Strictly speaking.

Which it is...as in the kitchen has been kept up to standard over time.
 
A new question in relation to Capital Gains Tax on disposal of second home. I have read on auctioneera.ie that costs incurred on upgrading property can be indexed up to reflect present day cost at time of sale. Is this correct?
 
A new question in relation to Capital Gains Tax on disposal of second home. I have read on auctioneera.ie that costs incurred on upgrading property can be indexed up to reflect present day cost at time of sale. Is this correct?
Indexation relief applies to the cost of enhancing the value of the property.

However, indexation relief is only available for costs paid for up to the end of 2002
 
Hi!
In a similar situation to OP. I have the following invoice from the builder for "extra" stuff I got him to do on top of what was included in the purchase price. This was 20 years ago, and the house was sold this year.

Timber Flooring: 2,600.00
Tiles: 1,057.00
Extra double socket: 30.00
Outside tap: 50.00

Can I simply add these to the basic cost of the house in "Purchase price" in my CGT calculation?

Timber flooring & Tiles are still there ... though obviously there would be some depreciation, esp the flooring.


Thanks a million,
/M.
 
Is the invoice in euro or punts. Convert if necessary and apply indexable relief to 2002.
 
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