CGT expenses

C

contractor

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Capital Gains Tax is calculated on any profit minus expenses incurred. But does anybody know what those expenses are? For a property investment are they simply the same expenses you incurr when letting? i.e management fee, mileage, wear and tear, repairs etc. or do they just mean expenses incurred when selling the property? i.e estate agent fees.
 
The expenses already claimed against rental income cannot be claimed for CGT purposes. You can claim purchase and selling expenses, e.g. Stamp Duty, accountant's fee for CGT submission, legal and auctioneer fees, but also any "capital" costs, such as replacement of a roof, construction of a conservatory etc, which would not have been claimed as rental expenses.
Remember that indexation still applies to costs and expenses from before 2002.
 
Paddy199 said:
Theres a guide on the Revenue website at:
[broken link removed]
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Thanks. I've checked this and my question would be related to the section: Am I entitled to any deductions in calculating my CGT liability? In particular any expenses falling under the title of enhancements.I am assuming the maintenance fee falls under the title of enhancements as well as any furniture and fittings (were they to be included in the sale).

Gervan said:
The expenses already claimed against rental income cannot be claimed for CGT purposes.
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That would suggest that the maintenance fee and furniture and fittings cannot be claimed against CGT, is that correct?
 
You can claim a deduction for any capital costs incurred on the property. This would include the acqusition costs, legal fees on acquisition and sale, stamp duty and any others costs which enhanced the value of the property for example, if you put on an extension to the property.

The cost of maintenance fees and fixtures and fittings would not be allowablfe for CGT as these would be allowable for income tax.
 
Ok thank you. On a similar issue, if you have built up a loss on the rental income, what now happens with this amoun at the point of selling? It is usually brought forward into the next year until such time you start making a profit and can deduct it from you tax payment. So if at the point of selling I still have a loss built up, can it be used in any way or is it just lost money?
 
Rental loss can only be set against rental income in the future. No expiry date, as far as I know.
 
When paying CGT on the sale of an investment property is the tax caluclated on the price you get if it is over what you paid for the property.
 
Winehouse,

Yes less enhancement costs less legal fees in purchase / sale. There is there an annul exemption limit of €1.3k.
 
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