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If you had sold it on immediately then chances there would be no gain significant enough on which CGT would be assessed. Can you post specific figures here perhaps - e.g.If I had sold the property when I paid the inheritance tax in the condition it was in, would I have not have had to pay this Capital gains tax?
Any money spent on doing up the property. Not sure where the line is drawn in terms of property and fixtures and fittings though. The former is allowable against CGT while the latter is allowable against rental income on a depreciation basis as far as I know. (Not a tax expert).Sorry what does capital expenditure mean??
Er - that is rental income. Or at least the money that they paid less mortgage interest and any other allowable expenses is rental income assessable for income tax! You could have an outstanding income tax liability there. You probably should get professional advice on all of the tax aspects of this asset holding.my sister stayed with her boyfriend who worked/project managed the site and they covered the mortgage repayments, so I recieved no rental income
So €43K in inheritance tax + €130K spent on renovations = €173K.Market value was 213,000. 20% of that figure went to the taxman. spent 130.000 in total on building work, materials etc.
If it sold for €555K then your CGT bill should be something like 20% of (€555K - €213K - €130K*) = €42K.it is lying empty now since April this year, and the valuation today was approx. 555,000 from one estate agent, but the neighbour reckons this is to high.
The suggestion of moving would'nt work, I have just had triplets and find it hard to move from the kitchen to the bedroom, but thanks anyhow for that!!
Is there sufficient information in this thread to assume that this is likely?In relation to the tax on the rental income, it is likely to be very low as the mortgage interest will have made up the vast bulk of the mortgage payments.
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