Enda Storey said:Buying abroad isn't going to remove the CGT liability if there is a double tax treaty in place, will merely postpone it. You would pay the local CGT on your new property when you come to sell that and pay any difference here....there's no getting away from it (although there is if you set up a company abroad and take the proceeds as dividends but do you wnat to go down that route ?). "Give onto Caesar what is Caesar's".
ramble said:The CGT is apportioned according to the time periods. For example if you own a house for 6 years, 5 years of that as PPR then 5/6ths of the gain is taxable. There is some indexation but it was abolised a couple of years ago so you get to index up to when it was abolished (sorry don't know the year off hand - on revenue web site). So if the rate of increase in property prices rises you loose slightly if it falls you gain.
conor_mc said:Should that not be if the house is PPR for 5 out of 6 years, then 5/6 of the gain is not taxable i.e. CGT is only due on the 1 year out of 6 in which it was an investment property?
Lorraine B said:Sorry Laura G, but you've misunderstood ramble's explanation. The last 12 months of ownership of a property, irrespective of where you actually live is deemed a period of occupation. However to qualify as a period of deemed occupation you must use it as your PPR before and after the period of absence. Also you cannot have any other residence during the period of absence which would qualify as your PPR
You should read this thread.LauraG said:Can anyone help me see the wood from the trees on this one. I have just bought my second home which I wish to use as my primary residence. I have the first house 5 years which I bought for the equivalent of 160k euros. It’s now worth 300k-320k. I don't have to sell it. I would like to keep it as an investment property
If you own it for x years, it was a PPR for y years and rented for z years (x = y + z) then ((z - 1) / x) of any resale gain is assessable for CGT.The problem is capital gains tax (CGT). If I sell it now or in the next 6-12 months it will be viewed as a change of primary residence and therefore exempt from any CGT. However, if I hold onto it for 3-5 years I would be liable for CGT. My question is, on what would the CGT be calculated?
See the Revenue CGT guides for information on indexation relief of acquisitions costs. If you don't understand the tax implications then you should get independent, professional advice.Also, someone was telling me that the 160K is index linked and would be recalculated to today’s monetary value
ClubMan said:I think the phrase is "a mine of inforamtion" actually. As it happens, I am just repeating what others have said in this thread and many others.
DeniseBK said:I've recently bought a two bed apt in Sunset Resort Pomoire with 3 yrs guaranteed rental and now want to buy a 2nd apt with the same 3 yr rental guarantee, then when the 3 yrs are up I'll sell one and use the profit (if any) against the loan on the 1st apt. What do ye think?
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