CGT where one owner dies

G

GGA

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My father bought a 2nd house in 1996 for €60,000.
In July 2007, my mother was added to the title deeds as joint owner for this house with my father.
In November 2007, 5 months later, dad died.
The house was sold in June 2008 for €200,000.
What is the position with Capital Gains Tax for my mother, as she only owned the house for 5 months?
Any help would be appreciated???
 
Isn't the CGT based on the difference between the value of the house at the date of death of your father and the sale price (less allowance of 1270) 5 months later
 
Tks black sheep.
Tried everywhere on revenue site to find solution & was unsuccessful.
Value of house of date of my fathers death was probably same as sale price 7 mths later. is there a specific revenue rule on the matter?
 
was your father married to your mother in 1996? if so then i would think that she would automatically be the owner at that time no matter what the title deeds say.
 
Tks Dereko1969,
Yes, parents married in 1996. i see your point. presumably, then CGT laibility died when my father died?
 
I think where Derek is coming from is that your mother was half owner of the asset from 1996 and thus may be liable for half the gains from that date. It's a v difficult question and I'd write to Revenue asking for a view on it.

From a non-professional standpoint, I think she could be liable for CGT on 50% of the gain between 60k and 300k. The portion she inherited from your father she got CAT-free as an inheritance between spouses and the base price for CGT purposes for that half would be the value at Nov 2007 - assuming no increase in price during that period, then there's no CGT for that portion. Btw, if there was CGT liability, she should pay it in October 2008

Sprite
 
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This is a typical CGT exam question so i wonder if the OP is having trouble with homework!

The way to look at it is that your mother got half a house in 1996 and half in November 2007. The 1996 half can be indexed.
 
Tks people,

Are my calculations correct -

house bought by dad 1996 €60,000
in joint names july 2007
dad died nov 2007
house sold by mother june 2008 €200,000

CGT Liability for mother is 20% of €70,000 = €14,000

(minus any deductable expenses)
 
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