CGT calculation for rental property.

thestart

Registered User
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Hi all,
I am selling a rental property I have in the next few weeks. I lived in it for about 1.5 years in 2002 when I purchased it. Does anyone have an example of the CGT calculation, excel sheet that I can use to estimate the money I will have to pay?
Thanks.
 
You calculate the gains between the cost and sale
You will get relief for all the months it was your PPR plus another 12
The % relief will be equal to this number of months divided by the number of months you owned the property
You will be liable to CGT on the balance of the gain

If this is not sufficeiently clear, then post some figures here and I can show you the computation
 
This one has been covered a few times here, including this thread. Use the search tool or to find others.
 
Hi thanks for reply, see details below

Purchase price, €175000
Expenses on purchase, €7152
Date purchase, 15/08/2008
Lived in property for 19 months,
€6000 for upgrades before sale,
Selling costs €5200
Selling for €240k to €250k.

Thanks.
 
Why not try to do it yourself, using the guidelines above and post the calculations here - that way you will get to understand how it is done rather than being given the answer on a plate?

Teach a man to fish ...
 
edited to reflect purchase time of August 2002 instead of August 2008 and including the Indexation value also.

purchase price of €175,000 indexed at 1.049 = €183,575.

purchase price + purchase expenses + upgrades (assuming you didn't already claim tax relief against rental income on these) + selling costs (these seem low considering you have estate agent fees and solicitor fees etc) = €183,575 + €7,152 + €6,000 + €5,200 = €201,927.

Assume you sell the house for €250,000, then your gain or profit is €250,000 minus €201,927 = €48,073.

Assume you sell the house 15th August 2022 then you have owned the house for bang on 20years, or 240 months. Of that time, you lived in it for 19 months and Revenue "allow" another 12 months assumed occupancy so 31 months out of 240 months. So 31/240 equates to 12.91% of the time you owned it. This percentage of the "gain or profit" is free of CGT, so that's 12.91% of €48,073 which equals €6,206.

There is a taxable gain of €48,073 - €6,206 which equals €41,867. You have a CGT allowance each year of €1,270 so your taxable gain is further reduced to €41,867 - €1,270 = €40,597. You pay CGT @ 33% on this, so your CGT tax liability will be €13,397. You pay revenue that and you keep the balance.
 
Last edited:
I did but I’m not sure how it works and didn’t want to embarrass myself!!!!!!
See below,

Purchase price, €175,000+ €7152= €182152 indexed at 1.049=

€191077.

Gain on €250k sale= €58922.55

Owned for 241 months total, 19 months lived in last 12 months excluded.

€58922.55 / 241 x 210(241-31) = €51343.3 gain.

Upgrade before sale, €6000.

€51343.3 - €6000 = €45343.3 x 33% = €14963 - €1270 = 13693.29 to revenue
 
Thanks pebblebeach2020.
Do you not add the purchase price and purchase expenses together and then index for inflation?
 
I did but I’m not sure how it works and didn’t want to embarrass myself!!!!!!
See below,

Purchase price, €175,000+ €7152= €182152 indexed at 1.049=

€191077.

Gain on €250k sale= €58922.55

Owned for 241 months total, 19 months lived in last 12 months excluded.

€58922.55 / 241 x 210(241-31) = €51343.3 gain.

Upgrade before sale, €6000.

€51343.3 - €6000 = €45343.3 x 33% = €14963 - €1270 = 13693.29 to revenue

You should deduct the upgrade price before doing the apportioning for PPR relief. Otherwise it's correct, assuming that the upgrade is deductible enhancement expenditure.
 
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