Mother selling second home, tax implications?

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paperclip

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My mother has a second holiday home, very large, 5 bed.

It's too big and expensive for her to maintain, so, she's thinking of selling.

What are the tax implications here? Would she have to pay capital gains tax on it?... or is capital gains tax when you inherit money?

I'd estimate a rough value of 200k and it would have been over double that at the height of the boom...

I was thinking the best thing for her to do, is to sell it and buy a small apartment in Dublin, one she can rent out while still having an investment property.

So, I guess my questions are

1) If she sells, is she taxed on the sale? and if so, how much?

2) If she sells to buy a smaller place, but the same price, does she pay tax on this?

Cheers
 
On sale she will be taxed on the difference between what she bought if for and the 'gain' on sale. Less indexation, and less costs of purchase and sale. What year did she buy and for how much. If there is no gain then there is no CGT but a capital loss. Was the property ever her private residence?
 
Bronte said:
On sale she will be taxed on the difference between what she bought if for and the 'gain' on sale. Less indexation, and less costs of purchase and sale. What year did she buy and for how much. If there is no gain then there is no CGT but a capital loss. Was the property ever her private residence?
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Cheers for the swift reply.

The thing, my dad built it over 20 years ago... so, how is a gain calculated in this case?
 
That's funny we had the exact same scenario on here in the last month. Mandlebrot said that it would be on the build cost.
 
Bronte said:
That's funny we had the exact same scenario on here in the last month. Mandlebrot said that it would be on the build cost.
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Cheers, so, would you factor in the current price of the land and a build cost in todays money?
 
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