Help! Accidental Landlord - Capital Gains Tax on Sale

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apple1978

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Hello,

I have rented out an apartment in Dublin because I live with my husband in France. I am losing money every month and I need to sell it. When I contacted the tax office they told me I would have to pay Capital Gains Tax as it is a business. ( A term I hate because I had to move and don't make profits anyway...). I was really confused after the call and I am expecting a baby, I cannot afford to pay an accountant in Dublin.

If I sell my apartment does anyone know what I would have to pay? For example is it just on a profit on the original sale price or the total regardless?

Anyone who can shed any light, it is very stressful!
 
CGT is a tax on Capital Gains.

It's the (sales proceeds less selling expenses) less the (original costs plus acquisition costs).

There is an annual allowance of €1,270 then the rest is taxed at 33%, any periods that it was your Principle Private Residence are exempt.
 
Apple there is no need to get stressed. What was the purchase price and what year. How much will it sell for. The difference between the two are liable for CGT. But you can deduct many things, such as the initial purchase costs and the sales costs. Did you do any renovations that were capital in nature.

If you are liable for CGT then you are going to be making a profit, I'm sure you can hire an accountant out of that profit. You're better off hiring a professional to do the costs.

I presume you are all above board in relation to the rental income and tax obligations as a landlord, if not then selling at a profit might be a good time to sort this out too - with an accountant. You state it's costing you so maybe there is no tax at all.
 
Its not clear form the OP if this is a Buy to Let apartment or perhaps was initially a principal private dwelling and then became a rental property.
I think that CGT would not apply to the time it was a PP dwelling.
 
JMJR said:
Its not clear form the OP if this is a Buy to Let apartment or perhaps was initially a principal private dwelling and then became a rental property.
I think that CGT would not apply to the time it was a PP dwelling.
Click to expand...

+1
Also if it is negative-equity, then no CGT on the sale whatsoever !
 
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