# deductibles on capital gains tax



## Aineyoung (1 Jun 2022)

Hi, I am selling a house I inherited from parents x 6 years ago.
My reckoning is that Capital gains tax is roughly 55, 000.00 plus. total fixed price not agreed.
I know I  can deduct for enhancements and improvements done to the house since I inherited it.
I think there is a personal allowance fee allowed

My query is 
can I  deduct the solicitors fees, and estate agents fees, and engineers feels (all substantial ) from this amount?

Many thanks in advance.


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## cremeegg (1 Jun 2022)

Aineyoung said:


> Hi, I am selling a house I inherited from parents x 6 years ago.
> My reckoning is that Capital gains tax is roughly 55, 000.00 plus. total fixed price not agreed.
> I know I  can deduct for enhancements and improvements done to the house since I inherited it.
> I think there is a personal allowance fee allowed
> ...


You can deduct the costs of sale, so soles and estate agents.

It depends on what the engineer was doing, if he was working on the improvements then yes.


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## jpd (2 Jun 2022)

As long as they are enhancements and not just maintenance or repairs


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## Aineyoung (11 Jun 2022)

Many thanks for clarifying that.


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## ClubMan (15 Jun 2022)

Might be relevant...





						Principal Private Residence (PPR) Relief
					

This is an explanation of what relief on cgt is available for a Principal Private Residence (PPR)




					www.revenue.ie


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## T McGibney (16 Jun 2022)

ClubMan said:


> Might be relevant...
> 
> 
> 
> ...


Some of the content in that guide is misleading if not downright wrong. People should not be relying solely on such misinformation if they are facing or at risk of incurring substantial tax bills.


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## ClubMan (16 Jun 2022)

T McGibney said:


> Some of the content in that guide is misleading if not downright wrong. People should not be relying solely on such misinformation if they are facing or at risk of incurring substantial tax bills.


What, specifically, is misleading/wrong in the guide?


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## T McGibney (16 Jun 2022)

ClubMan said:


> What, specifically, is misleading/wrong in the guide?





> You can only claim for the part of the house you used as your home. For example, you might have used half your house as your home, and half for your business. You can claim exemption on half of the chargeable gain.


is only partly true at most. If a tradesman sits down at his kitchen table once a week to do his paperwork, the kitchen doesn't axiomatically lose CGT exemption.

The illustration in the linked Tax & Duty Manual that suggests a current use value of €2,000 for a domestic garden is laughably misleading. Only a lunatic would sell a large portion of their garden for €2,000.


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## jpd (16 Jun 2022)

To be fair, I don't think anyone would confuse "using a corner of the table a few hours a week" with "using half the property full-time" !


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## T McGibney (16 Jun 2022)

jpd said:


> To be fair, I don't think anyone would confuse "using a corner of the table a few hours a week" with "using half the property full-time" !


Those words aren't used in the Revenue guidance though and no attempt is made to explain it. The words "For example, you might have used half your house as your home, and half for your business. You can claim exemption on half of the chargeable gain." are very clear - and misleading.


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## DirectDevil (18 Jun 2022)

For something of the order and importance of OP's potential liability I would engage an accountant who deals with tax as a speciality. 

I had a similar situation a few years ago with an inherited house. I faced a potentially troublesome tax bill due to an ambiguity. Engaged an accountant who deals with this area and she had it sorted within one week - ended up with a "nil" assessment.

Her fees equated to the cost of an opinion from a junior counsel - well worth it to nail down the issue without the worry of any comeback especially if you misinterpret anything and make an erroneous return.


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