Capital gains on property rented 1/2 of the time

[Chupacabra]

Good day all
i have purchased my 3 bedroom semi-detached house in 2004. Between 2004-2008 the house was my principal residence in 2008 we moved in my wife's house till 2017 and my house was fully rented. March 2017 we separated and i returned back to my property and started to rent 2 rooms. I have now decided to sell my property and purchase a smaller one, but unsure how calculate CGT. Hs was purchased for 275K and selling at 410K. In short half the time was fully rented and half the time was principal residence. Cheers

 

[jpd]

Sales price	€ 410,000​
Cost	€ 275,000​
Capital gain	€ 135,000​
Length of time you owned the property 2004 - 2022	19 years​
Length of time as PPR 2004 - 2008, 2017 - 2022 (probably)	10 years​
Number of years relief - including final year	11 years​
Capital Gain Relief is 11 / 19 or 58%	€ 78,300​
Taxable gain € 135,000 - € 78,300 =	€ 56,700​
Tax due @ 33%	€ 18,711​

This is my estimate

 

[torblednam]

@jpd I think you have counted the final year twice there.

And the total period of ownership would be 18 years (plus or minus a few months depending on what month of the year it was bought / sold).

So it looks like it's closer to 50% than 58% exempt.

But there'll be legal & stamp duty costs on purchase, and legal and estate agent's fees on sale, to come off the gain too.

 

[Chupacabra]

Sales price	€ 410,000​
Cost	€ 275,000​
Capital gain	€ 135,000​
Length of time you owned the property 2004 - 2022	19 years​
Length of time as PPR 2004 - 2008, 2017 - 2022 (probably)	10 years​
Number of years relief - including final year	11 years​
Capital Gain Relief is 11 / 19 or 58%	€ 78,300​
Taxable gain € 135,000 - € 78,300 =	€ 56,700​
Tax due @ 33%	€ 18,711​

This is my estimate

tnx a lot Jdp much appreciated

 

[Chupacabra]

@jpd I think you have counted the final year twice there.

And the total period of ownership would be 18 years (plus or minus a few months depending on what month of the year it was bought / sold).

So it looks like it's closer to 50% than 58% exempt.

But there'll be legal & stamp duty costs on purchase, and legal and estate agent's fees on sale, to come off the gain too.

so the hs was purchased on June 04 - June 2022 wud be 18yrs - so i calculated .61pc ?
what percentage of the legal costs are deductible? i am calculating all together selling/buying/stamp duty/estate agent = 11.7
Tnx a mill

 

[AAAContributor]

so the hs was purchased on June 04 - June 2022 wud be 18yrs - so i calculated .61pc ?

I think the proportion of the gain that can be relieved based on what you outlined is closer to 50%: 9 years of occupation over 18 years of ownership. I'm not sure the 'last 12 months' allowance counts as you are occupying the residence and already counting this period.

what percentage of the legal costs are deductible? i am calculating all together selling/buying/stamp duty/estate agent = 11.7

To the extent that all the fees are wholly and exclusively incurred for acquisition and disposal of the asset - all of it.

Check your records to see if you incurred any capital expenditure that you spent on the property that was not relieved by capital allowances and include in your CGT computation.

Don't forget about your annual allowance of €1,270 to further reduce your taxable gain.