Can I deduct a renovation mortgage when calculating CGT

O

Orbit

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When calculating CGT on the sale of a house can a renovation mortgage of 60K be subtracted from the sale price when calculating the capital gain ?
The mortgage was used for major renovation on the property 14 years ago, e.g. new wiring, new plumbing, new windows & doors, new roof, new kitchen, new bathroom and much more…
The renovation was done by several different tradesmen and I’m concerned because I’ve dumped most of the receipts over the years. Do I need to have all the receipts ?
 
Its a self assessment system.

If you claim a deduction then you should have some documentary evidence ie invoices or copies of paid cheques on your file to back it up.

If you are audited and you don't have evidence to go with your claim you will have an issue.
 
Mortgages are irrelevant to CGT.

Expenditure on improvements to the property is allowable provided they are still evident on sale - eg an extension would be allowable however a conservatory which is later removed would not.

If there is CGT payable, was it a rental property? Did you claim for the repairs against rental income at the time?
 
Joe_90 said:
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If you are audited and you don't have evidence to go with your claim you will have an issue.
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You're only supposed to keep receipts 6 years. Just saying. So I don't think revenue can have an issue particularly when it's more than 14 years ago.
 
Depends on your interpretation of when the six years start ie you clearly consider it to be the date that the expenditure was incurred, I might say its the date that you make the claim for a tax deduction for the expense in your tax return.

Its section 886 TCA 1997 if anyone wants to look it up.
 
Bronte said:
You're only supposed to keep receipts 6 years. Just saying. So I don't think revenue can have an issue particularly when it's more than 14 years ago.
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Revenue don't need to have "an issue" - its up to the taxpayer to be able to prove the veracity of the figure on their return. If they say the gain is X amount they'll need to be able to evidence it.
 
Exactly as Joe 90 has said...it's not "six years, end of story".

It's six years from when you use the information, which is actually seven years when you think about it.

Example:

- I renovate an investment property in 1999.

- I sell it in 2015.

- I submit my 2015 tax return in 2016.

- I need to retain details of the renovations until 31 December 2022.
 
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