Sell one investment property and buy another CGT?

C

ciarank

Registered User
Messages
28
If I sell an investment property for €200k and buy a different one for €200k in the same year, would there be a CGT liability if the original property cost say €150k (meaning a gain on the original property of €50k?
 
Yes. Liability would be in the region of €50,000 - €1,270 = €48,730 at a rate of 25%, I think since the mini budget in April 2009. So in the region of €12,175. These figures assumes you bought the property after the end of indexation in 2002.
 
The main thing is that buying another property is irrelevant. If you sell an investment property, you will be subject to CGT.

Brendan
 
Many thanks for the reply. That answers that clearly.

I guess it makes sense to tax each individual property otherwise one could keep reinvesting the proceeds into larger investments without ever having to pay any CGT.

However I assume it would be possible to offset a capital loss against a capital gain on two different properties if they were sold in the same year right?

Thanks again.
 
Yes, you can set off a loss on one property against a gain on another.

You can also carry unused losses forward.

You cannot carry them backwards though.

Brendan
 
You must log in or register to reply here.
Back
Top