sell apartment because of CGT

B

browser99

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I bought an apartment in Dublin around 1989 for 64,000 euro, now valued about 330,000. Have no other property.

I have lived in the apartment until mid 2014 when I rented it out.
But now find I am liable for capital gains tax for the proportion of time that it is rented out.

Would I save on tax if I sell it and buy a new property for renting out?
rental is approx 14000pa.
 
I don't think you have a CGT liability as the last year of non-living there is discounted. So if you sell now you won't have a liability. And even if you don't sell it within the year the liability is proportioned so you'd have 1/26th of your profit (less all write-offs) which would not come to much. Seems an odd mentality to buy a property just to avoid a tiny amount of tax.
 
say the capital gain is 270,000, or 270,000/26 =10,384 per year.less an allowance 1200 ish 8184. cgt of 25% so annual cost of 2000.
so rent 14000 less income tax less 2000 less maintenance costs makes renting out a lot of effort for small return.
 
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