Capital gains tax query

C

copasetic

Registered User
Messages
8
I purchased a property for 130000 in 2002 and lived in it until 2014. I borrowed 6,000 from the credit union at the time of purchase. Borrowed an additional 25,000 in 2005 (remortgage) and 45,000 (additional mortgage) in 2009. This was for home improvement, bungalow attic conversion etc. The house is valued at 170,000.

I am unsure if I have to pay capital gains tax or if this is classed as a loss. Thank you in advance
 
Question 1 is whether you've made a capital loss. The answer is yes.

Question 2 is whether it's a capital loss that you can use. The answer is no.

It looks like you're €30k down (€170k less €130k less 70k enhancement). There are also other costs (e.g. stamp duty, acquisition/disposal costs, etc).

Then PPR relief wipes out most of that loss;

12 years there, plus one year extra deemed is 13 years of the 15 you've owned it. Net result based on a €30k loss is €4k of usable loss.
 
Thank you for your reply. I have documents for the loans but haven't kept receipts. Will this be an issue?
 
copasetic said:
Thank you for your reply. I have documents for the loans but haven't kept receipts. Will this be an issue?
Click to expand...

Potentially, yes. Do you have any receipts?

In the absence of receipts, I think I'd keep the head down and wouldn't claim the €4,000 loss.
 
No, I didn't keep them, I just got the house valued today and am deciding whether to sell. I was hoping for nearer 190,000 so may keep it for another few years and hope for the best. I thought if the value didn't increase in another few years I might end up paying more cgt.
 
I cannot understand why people don't keep receipts. Having said that one is not required by revenue to keep receipts forever. Copasetic I assume you must have made some payments for the capital expenditure by cheque, or withdrew money from your bank etc. I suggest you find that information and keep that. Also write down exactly the work you did, and take pictures and put all this in a file marked CGT. That will be your back up if revenue have any queries. If in general all is above board in all your tax dealings they are unlikely to raise any queries.
 
You must log in or register to reply here.
Back
Top