Tax implications on selling home

P

Pablo74

Registered User
Messages
218
Hi all, My friends ( as a couple) bought a house back in 2002. They got married but since have split up.
They put the house up for sale last year and have now got a good offer for it. When sold they should come out with a total profit of 80k between them.
Are there tax implications on that 80k ?
regards
Pablo74
 
Principle private residence relief will exempt any period that they occupied the house as their principle private residence. The last 12 months also qualifies. The only issue is where one of the parties has moved out for longer than 12 months.
 
Thanks Joe 90 for your answer. She moved out over 2 yrs ago, do you know the implications of that ?
 
Are you sure they will make a profit, ie selling price exceeds purchase cost by €80k? Or do you mean they willl have €80k cash after selling the house and the remainder of the mortgage is cleared?
 
They are selling the house for 240k, after clearing the mortgage of 155k plus expences. They are hoping to have 80k profit left.
Hope that helps.....
 
The capital gain (which is potentially taxable) is calculated by taking purchase cost and selling costs from the selling price. Mortgage doesn't come in to the calculation at all. So there's no possibility of a gain unless the house is being sold for more than was paid for it.

If you think about it, using your method you'd effectively be paying tax on your mortgage repayments.

It's unlikely that there would be a gain on a house bought in 2002.
 
You must log in or register to reply here.
Back
Top