Hasn't your accountant advised you already?Rough figures. I did a major renovation of a rental property when first purchased. As in completely gutted the place. Prior to letting. Electrics, plumbing, bathrooms, kitchens etc. Total cost 100K. Wrote of 60K under the Countrywide refurbishment scheme.
- Can I write off 40K for CGT enhancement (obviously never claimed it under rental tax)
- The mortgage interest was not deductable for a few months, can I claim this now as a capital cost, (that this cost is capitalised)
- anyone have a CGT template, a simple one
- ditto which shows one year and 6 months as principal private residence
- anyone have a CGT template a more complex one with the indexation and pound to Euro.
- is stamp duty paid on purchase deductable
This is my current calculation:
Sale price less
Current:
- Less Costs of Disposal, so auctioneer and solicitor (and any legal/ber/corporation/survey etc things)
Past:
- Less enhancement above, indexed, less legal costs on purchase, indexed. Less conversion of garage into flat, indexed.
I'm doing up CGT at the moment and looking at my old files. My accountant told me that it doesn't matter if an item is expensive. ...
You're funny. I did CGT a very long time ago on a property sale, and I've now to do a new one so I'm on here because I like to have different viewpoints. What I was referring to in that other thread is more than a decade ago in relation to tax returns on rental income. It's good to keep up to date. I'm not hiring an accountant to do the CGT, though I might, as I've a large loss to offset and it's niggling me revenue might query it. Which if I'm positive could be a good thing as I'm sick of dragging paper files around with me for a few decades.Hasn't your accountant advised you already?
It wasn't meant to be funny.You're funny.
- I've figured out the stamp duty plus multiplierI wouldn't automatically assume that your original purchase price should necessarily be discounted for the purposes of the CGT computation by the deductions claimed under the Rural Renewal Scheme (or whatever scheme you refer to). Obviously as a material item, this question alone could have a huge effect on your overall calculation and would be worth getting right
There is no circumstance in which you can get a CGT deduction for mortgage interest.
Stamp duty paid on purchase should indeed be deductible.
Get your accountant to check this properly. It's too big an item to miss if you are entitled to it.- I'm only going to claim the enhancement of the portion I did not use under The countrywide refurbishment scheme (it was not a rural scheme so I suppose that was a different scheme). You can't be claiming twice.
Calculate that period and add one year to it, assuming you haven't lived there in the past 12 months.- I just have to figure out how to deduct my period of occupancy. I know that to the day. But there is a special rule about adding an extra year that I've to figure out, I'm non resident so maybe I don't get that
It's definitely not allowable.- I discovered I paid my bank an early redemption fee when I moved banks to get a better rate, I put that in as a cost
The calculations are easy. Remembering and knowing what to include is the tricky bit.- revenue website is tricky to navigate, I didn't realise there was a complete section just for professionals, where you can find the stuff you want, I looked at UK revenue and there they even have a CGT calculator for taxpayers. This should be available to Irish taxpayers.
WiseI've decided my accountant will do the calculation for me, he's really good and well worth the fee, plus that's deductable too, and I don't want to stupidly get caught for the sake of saving money on hiring a professional.
SensibleMy solicitor also advised me that for historical transactions, where clients no longer have bills, that an accountant does a good 'guestimate' (my words). Which is acceptable to revenue I guess.
Well that's a pity, I'll have to find something else. I never previously thought about how important it is to have a loss at the same time as a gain. So I've learnt that anyway.It's definitely not allowable.
That sounds like the tax tail wagging the investment dog and doesn't really make much sense.Well that's a pity, I'll have to find something else. I never previously thought about how important it is to have a loss at the same time as a gain. So I've learnt that anyway.
I think it's good to end where I was at because of the RPZ. One buyer is going to put in over 200K and I'm not up for that. It would be just a mess with the RPZ.That sounds like the tax tail wagging the investment dog and doesn't really make much sense.
Having a loss to offset a gain just to avoid tax is less advantageous than having a net gain and paying the tax due.
I'm pretty sure that the answer is "no".Electricity/Gas while property is being sold. Can't use it for income tax as it's between lettings. So can I use it against anything?
Only if you're exempt from income tax or paying it at the lower rate (20%).My accountant pointed out it's better costs against CGT as the tax is higher than the income tax.
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