My Brother in Law inherited a house in Dublin 35 years ago the house has been rented ever since
My Brother in Law lives in Canada for the last 40 years He was Born in Dublin and was resident in Ireland until he was 27/28 he has paid tax on the rental income from the house here in Ireland
He would now like to sell the property but has no idea regarding the Tax implications or the most tax efficent way to deal with it
Should he come home and live in it for a period of time etc
any advise please or if anyone can point me towards a good Tax consultant
Living in the house isn't going to make any notable difference to his tax liability, if he's owned it for 35 years - if for arguments sake he lived there for a year, it would make 1/36th of the gain exempt.
It's a relatively straightforward CGT calculation. No loopholes or anything, a good tax consultant will make very easy money from doing it. But certainly, pay someone who is at a minimum fully competent in making tax returns, to make sure the return is done correctly.
The biggest challenge may be establishing how much the property cost (or was worth) in the late 70's.
P.S. I can point you in the direction of a full stop, or several!! ---> ........
I presume that the CGT is payable on the amount gained from value at time of inheritance.
ie if valued at 50000 then and sells now for 500000 capital gain is 450000,so CGT is payable on that amount at the current rate can you confirm if this is correct and what current rate would be thanks.
My Brother in Law inherited a house in Dublin 35 years ago the house has been rented ever since
My Brother in Law lives in Canada for the last 40 years He was Born in Dublin and was resident in Ireland until he was 27/28 he has paid tax on the rental income from the house here in Ireland
He would now like to sell the property but has no idea regarding the Tax implications or the most tax efficent way to deal with it
Should he come home and live in it for a period of time etc
any advise please or if anyone can point me towards a good Tax consultant
I suppose it depends on why the house needs to be sold now and what the his plan is from now until he get the final call from Above and what his plan is for distributing his estate.
The CGT hit will be pretty steep so it might be worth reflecting on what might be done over a period of time.