CGT on inherited property

[Martin68]

Hello ,
I have a question about a property that I inherited.
The house is in very bad repair and I am willing to sell it for a lot less than valuation.
As it is an inherited property will I have to pay full 22% CGT on it or is a certain amount exempt?
I have an person interested in it but she has to wait for the bank to approve a loan.
I would be selling for about 67k.
The house was left to me in my parents will and I also received 600 euro.
My auctioneer or solicitor cannot give me any advice and an accountant would cost me 370 euro to do a CGT assessment.This is money I simply haven't got.
Thank you for taking the time to read this.
I hope this is in the correct section and my sincere apologies if it is not.

 

[pudds]

AFAIK a son or daughter can receive a gift from their parents and the threshold in that situation is hugh, something like 500k before any tax would be incurred. Check here it might be what you need.

Inheritance Tax

 

[mathepac]

@Martin68, first off have a look here - http://www.citizensinformation.ie/categories/money-and-tax/tax/capital-taxes/capital-gains-tax and follow any links to Revenue information.

CGT is now 25% on disposals after 7 April 2009.

Was the property your parents' PPR or an investment property and did you ever live there after inheriting?

@pudds, AFAIK your post relates to CAT (gift tax or acquisition tax) and not CGT (gains tax on capital or tax on disposals).

 

[rosemartin]

martin it is my belief that if you retain the property in your name for 3 years after inhertance you have nothing to pay after sale, if you sell within that period you do have a tax payment, you have no initial tax on inhertance as the property is under the threshold as previously stated by pudds

 

[Martin68]

The property was our family home and it hasn't been lived in in nearly a decade as my my mam passed away in the 1990's and my dad was in a nursing hospital .
I am married with my own house and family and only lived there for two years while we were saving before we bought our house.
Thanks for the link and all the valuable information and also taking the time to reply,
My kindest regards,
Martin.

 

[Importer]

Martin

Presumably, the property is now registered in your name and there is no inheritance tax outstanding, from when you inherited it.

CGT will be calculated as the difference between the value of the property when you inherited it and its market value now @ 25%.
(If the disposal price is lower than its current market value, then the market value needs to be used)

In addition you may be entitled to a number of reliefs

1) an annual personal relief of 1270 against the gain
2) If you have lived in the property as your principal residence, since you inherited it, you will receive relief for those years
3) you may be entitled to some indexation relief depending on what year you inherited the property

I hope this helps

Best wishes