CGT allowable expenses

A

aido71

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Property sale agreed and trying to work out CGT liability. Trawled through revenue site and think my head around most of it so if I have this correct something like this;
CGT due on profit selling less purchase
Personal exemption x2 approx €2500
Solicitor purchase cost
Solicitor + auctioneer selling approx
Allowable expenses: this has me stumped: annual tax returns done so have claimed various deductions year on year and no issue. However spent approx 10k prior to selling to upgrade the property. Can I deduct all that or how does that work. Revenue site vague on this
Also the solicitor and auctioneer fees… can I just claim the amount on the invoice or is it just the conveyance fees etc?

So using an example is the following calculation broadly correct?

Taxable gain 100k
Less:
Fees buying and selling 13k
Personal allowance x2 2.5k
Allowable expenses 10k

CGT liable gain: 74.5k
CGT 33.33%
CGT due: 25k

Have always tried to err on cautious side when claiming allowances but am thinking the amount dueis on the low side…I would like to think otherwise but any comments appreciated!
 
Sorry have the .3333 in my head as when I am calculating 33% that is what is the figure on the calculator!!
And yes while I have always just done my own tax return ( simple as paye so very little to it annually) am thinking is it worth paying someone to do it..
 
What were the 10k expenses - unless the are for substantial upgrade to the property then they would not be allowable against the gain

For example, painting the interior before the sale would not be a substantial upgrade. It would be maintenance and be allowable against rental income
 
aido71 said:
Property sale
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What is the nature of the property?
Did you ever live in it?
Was it ever made available to a dependent family relative for no rent?
When was it purchased in case indexation relief applies?
aido71 said:
Personal exemption x2 approx €2500
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Why x 2?
If it's jointly owned by two people 50:50 then they need to do their own CGT return for their share separately.
aido71 said:
However spent approx 10k prior to selling to upgrade the property. Can I deduct all that or how does that work.
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Depends on the exact nature of the "upgrades".
aido71 said:
Also the solicitor and auctioneer fees… can I just claim the amount on the invoice or is it just the conveyance fees etc?
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I think it's the full amounts but I'll not a tax expert/practitioner.
 
aido71 said:
any comments appreciated!
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I see that this was an investment property purchased c.18-19 years ago according to a previous thread - A Landlord's Experience - which was fully rented out for the duration of ownership.

Was there stamp duty payable on the purchase? If so, do your figures above allow for it?
 
AAAContributor said:
I see that this was an investment property purchased c.18-19 years ago according to a previous thread - A Landlord's Experience - which was fully rented out for the duration of ownership.
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Would have been helpful to (re)state that up front to obviate the need for others to perform a forensic search of the original poster's posting history...
 
Thanks for quick responses:
Investment property always rented

X2 was based on revenue website: annual return sone jointly so assumed can do likewise with CGT? House in both names

10k as house was left in appalling state (have posted separately about that saga!)

Yes included full repaint re carpeting etc but also required boiler works doors skirting kitchen work based on damage done plus window door repairs etc.., just trying to work out what constitutes upgrades as opposed to maintence (garden also required a lot of work)

Just don’t want to overclaim but equally don’t want to underclaim!!!
 
aido71 said:
10k as house was left in appalling state (have posted separately about that saga!)

Yes included full repaint re carpeting etc but also required boiler works doors skirting kitchen work based on damage done plus window door repairs etc.., just trying to work out what constitutes upgrades as opposed to maintence (garden also required a lot of work)
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You've answered your own question.
 
yes paid stamp duty and apologies if I have offended anyone by not referencing other post… that was entirely different…. Just wanted to know if I am on right track!!
 
All great info thanks….kinda thinking might be worth the cost of paying someone to do this… but if I read correctly I have until December to settle the liability so maybe be expert myself if I do enough research!! Seems little more involved that a simple return every year for rental income… but maybe not!!
 
aido71 said:
kinda thinking might be worth the cost of paying someone to do this… but if I read correctly I have until December to settle the liability so maybe be expert myself if I do enough research!!
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Just bear in mind that if you leave it until the winter to sort out, you may well struggle to find an accountant willing to take it on particularly in October or November when almost all accountants have considerably more work than they need.
 
I intend to get this sorted as soon as all sale completed and money transferred! no point looking at money in my account that isn’t actually mine!!!
 
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