tunnellight
Registered User
- Messages
- 28
I don't think this is correct. Your purchase price was €160k. Ignore the transfer in 2016 it was a gift.My thoughts -but with warning
Your initial investment was 50% of € 320,000 in 2007 or € 160,000
Then you had an enhancement of € 65,000 in 2016 when you purchased the other 50% you say no cash was exchanged but surely your ex got something in exchange for handing you 50% of the appt?
So your cost is € 225,000
Selling price € 240,000 in 2022
Capital gain € 15,000
Years of ownership 2007 - 2022 = 15 years
Years as PPR 2007 - 2009 = 2 years
So PPR relief = 2 + 1 (last year no matter what) = 3 years out of 15 or 20%
Taxable gain = € 15,000 less 20% = € 12,000
Less personal allowance of € 1,250 = € 10,750
Tax at 33% = € 3,550 approx
A major caveat could be the undervaluation in 2016 - this could raise issues of Gift tax as you received a gift of the difference between the actual value and paid for value
The mortgage is irrelevant.Could the taking over of the mortgage be viewed as payment for the half share ?
That's a good point.it is not clear that the notional cost of acquisition of € 65k will be allowed as you effectively got it for € 0 - or maybe the value of the future mortgage payments for the 50% could be used .
Definitely get the advice. I would be interested to find out what advice you are given.Thanks , good to just hear a few opinions before I speak to an expert.
On that note , if anybody can recommend a tax accountant , please PM me
I will update here with the adviceDefinitely get the advice. I would be interested to find out what advice you are given.
What about acknowledging people’s posts?I will update here with the advice
Say you own a house that’s worth €65k but you’ve a €65k mortgage.How did the second transaction happen at 65k if no actual money changed hands?
Where does the 235k come from?
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