CGT liability on renovated house

[sunnyside84]

Hi all,

First time poster. I bought a terraced house in November 2013 which was in need of total renovation.I was a first time buyer and I stated that it would be my PPR for mortgage purposes. I have been renting in the interim. The house is now almost renovated and I have a couple of options and am wondering what the tax implications are for these.

1. Sell the house when fully renovated. I do not see myself living there for the rest of my life so this is an option. Would I be liable to CGT and how would this affect me when I buy a house I want as my home?

2. Rent the house with me living there. I know that there is a 10k tax free rental income allowed.

3. Rent it without me living there.

Would be grateful if you could help me in any way.

Many thanks

 

[Setanta12]

WWW.revenue.ie has useful guides to the main taxes. Really you're covering a huge amount of ground in those simple queries - in a nutshell;

1-Yes, liable to CGT on essentially the profit. Wouldn't affect a further purchase.
2 -You mean rent-a-room, have tenants with you as live-in-landlord. No tax implications if you don't breach the EUR€10k rule.
3-Can of worms - simple question but requires a huge answer. You could be breaching your mortgage conditions. Liable to tax from Day-1. Liable to have to deal with 'awkward' tenants and the PRTB. May affect a further purchase by you as long as you have it.

 

[Bronte]

Anything purchased in 2013 and now extended to 2014 is exempt for CGT if kept for I think 7 years. Doesn't matter if it's your PPR or not.

Did you fib to the mortgage company to get the mortgage?

On the 3 options you would like us to advise you on, more details on your life plans would be needed. So filling out the money makeover thread would be a good idea.