# Capital Gain Tax - calculate ?



## taxistaxing (1 Nov 2015)

Purchased Apt in 1995 for 67K(53 irish)
Lived in apartment until 2006
Rental income generated 10K for 1 yr rental.
Used by family member currently

Expect 5K in legal /agent fees

If I was to sell now for 250 what CGT would i have to pay. 

I understand there is something about how long i lived there (11yrs) and other than that I am not sure what else I can take into consideration.


----------



## jpd (1 Nov 2015)

Capital gain = Sale proceeds minus expenses minus cost.
The cost is multiplied by an indexation factor depending on when the purchase was made 1.309  if between 1sr Jan and 5th Apr and 1.277 if between 5th Apr and 31st Dec.
Assuming latter, gain = 250 - 5 - 67 * 1.277 = 159

apt was owned for 20 years 1995 to 2015
Was principal private residence for 11 1995 to 2006
Relief granted for 11 years plus 1 (final year of ownership)
No relief for 20 - 12=8
Taxable gain = 159 * 8 / 20 = 64
Tax = taxable gain less annual allowance x 33% = 64 - 1.270 = 62.73 * .33 = 20.7


----------



## Dermot (1 Nov 2015)

You will also be entitled to claim relief on the purchase costs ie solicitors costs/surveyor costs etc.


----------



## Eithneangela (1 Nov 2015)

Maintain all records of basis for calculations. I'm currently in nightmare situation with Revenue because I couldn't update ROS system with relevant details re sale of house and my CGT amount paid falls a long way short of what Revenue think I owe. So, keep details of any phone calls, emails etc... Impossible to get a voice at the end of a phone in my tax office - makes it even more important to keep your own records and email or snail mail your local tax office with all communications and relevant details.


----------



## Bronte (2 Nov 2015)

Dermot said:


> You will also be entitled to claim relief on the purchase costs ie solicitors costs/surveyor costs etc.



And any capital improvements like an extension etc.


----------



## T McGibney (2 Nov 2015)

Eithneangela said:


> Maintain all records of basis for calculations. I'm currently in nightmare situation with Revenue because I couldn't update ROS system with relevant details re sale of house and my CGT amount paid falls a long way short of what Revenue think I owe. So, keep details of any phone calls, emails etc... Impossible to get a voice at the end of a phone in my tax office - makes it even more important to keep your own records and email or snail mail your local tax office with all communications and relevant details.




I don't understand? ROS doesn't have anything to do with CGT unless perhaps you're trying to complete a Form 11 return (with CGT details included) using ROS? Have you compiled a separate CGT computation and filed it with Revenue?


----------



## taxistaxing (2 Nov 2015)

jpd said:


> Capital gain = Sale proceeds minus expenses minus cost.
> The cost is multiplied by an indexation factor depending on when the purchase was made 1.309  if between 1sr Jan and 5th Apr and 1.277 if between 5th Apr and 31st Dec.
> Assuming latter, gain = 250 - 5 - 67 * 1.277 = 159
> 
> ...




Many thanks for taking the time to produce this.

Please advise is the 20.7 , twenty thousand seven hundred due in CGT approx.

Also I had converted the purchase price from 53K irish punts to 67 K euro


----------



## 44brendan (2 Nov 2015)

taxistaxing said:


> Also I had converted the purchase price from 53K irish punts to 67 K euro


Would be €67,296 as per Revenue calculation!


----------



## jpd (2 Nov 2015)

Yes, € 20,700 is the CGT due.

Also, you will need to be more exact with the figures - and I think the durations can be/should be calculated in months not years so the exact dates are required.

Be careful about the payment dates - if you sell in before end Nov, the tax is due by 15th Dec and if you sell it in Dec, tax is due by 31 Jan


----------



## Rory_W (2 Nov 2015)

is the family member occupying a dependant relative ?

Residence provided for a Dependent Relative 10

Updated March, 2014 [19.7.3]

3.22 Subsection (11) of Section 604 extends the scope of the relief available to an individual on the disposal of a residence (including a garden or grounds not exceeding one acre) which he or she had provided for use by a dependent relative. The requirements of Section 604 as regards periods of occupation and use of the premises by the relative apply as they would to an individual who was owner/occupier.

‘Dependent relative’ in relation to an individual means:

 A relative of the individual, or of the husband or wife of the individual, who is incapacitated by old age or infirmity from maintaining himself or herself or

 A person who is the widowed father or mother (whether or not incapacitated by old age or infirmity) of the individual or of the spouse of the individual or

 a person who is the father or mother of the individual or of the wife or husband of the individual who is a surviving civil partner and who has not subsequently married or entered into another civil partnership.

The term relative is not defined and it should be given its widest possible meaning. In determining whether or not relief is due, no account should be taken of the income of the relative.

It is a condition of the relief that the dwelling-house must have been the sole (not merely the main) residence of the relative. It is a further condition of the relief that the dwelling-house should have been provided gratuitously (rent- free and without any other consideration). Accordingly, any period during which the relative paid a rent to the owner, or occupied the residence in consideration of performing services for the owner, will not count as a qualifying period.

It is a term of the relief that only one dwelling-house provided by a claimant for a dependent relative can qualify at any one period of time. A husband and wife living together are treated as separate individuals for the purposes of the relief for a dependant’s residence. In the event, therefore, that a husband provides a residence for a dependent and during the same period of time, a residence is also provided for a dependent by his wife, both houses may, on disposal, qualify for the relief, provided the other requirements of Section 604 are fulfilled. It should be noted that:-

(a) the separate treatment of husband and wife must be strictly preserved - the houses must be genuinely provided by the husband and the wife respectively, not both establishments by one or other of them,

(b) as regards their own principal private residence, the husband and wife may still qualify for the relief in respect of one but only one principal private residence at any one time.

11

The relief to be given, on a claim being made by the disponer, is such relief as would be given under Section 604 in respect of the dwelling-house and grounds if the dwelling-house (or the relevant part thereof) had been the disponer’s only or main residence during the period of residence by the dependent relative.

Furthermore, any relief given under the subsection does not affect the relief available to the disponer, under Section 604, in respect of his or her own residence and is additional to any relief he or she could claim in respect of the house in question in respect of any period during which he or she lived in the house prior to its occupation by the dependent relative.


----------



## Eithneangela (3 Nov 2015)

T McGibney said:


> I don't understand? ROS doesn't have anything to do with CGT unless perhaps you're trying to complete a Form 11 return (with CGT details included) using ROS? Have you compiled a separate CGT computation and filed it with Revenue?


Yes. Tried to input Form 11 and CGT details using ROS. Kept getting input error which ROS Liaison Officer couldn't help with. Still trying to correct the mess.


----------



## taxistaxing (9 Nov 2015)

Can you offset management fees paid since i bought it as an expenses  similar to agent/solicitor fees?

Many thanks


----------



## taxistaxing (10 Nov 2015)

jpd said:


> Capital gain = Sale proceeds minus expenses minus cost.
> The cost is multiplied by an indexation factor depending on when the purchase was made 1.309  if between 1sr Jan and 5th Apr and 1.277 if between 5th Apr and 31st Dec.
> Assuming latter, gain = 250 - 5 - 67 * 1.277 = 159
> 
> ...


----------



## Joe_90 (10 Nov 2015)

taxistaxing said:


> Can you offset management fees paid since i bought it as an expenses  similar to agent/solicitor fees?
> 
> Many thanks


No


----------



## jpd (10 Nov 2015)

I think management fees would be allowed as an expense when calculating the Rental profit each year.

But not allowed as a deduction in calculating a capital gain.


----------



## taxistaxing (29 Jun 2016)

Family home built circa 1970 inherited in 2010 by 3 siblings.
house valued at the time of name transfer to siblings at 300K
expect to sell for 350K
What CGT is liable? how is i calculated?

separate question in relation to earlier post . Expenses incurred on sale can be written off against cgt , can expenses incurred e.g. solicitor fees on purchase of apartment be included in expenses?


----------



## please (29 Jun 2018)

Purchased a property, shop with an APT over it in 2013 for 120K rented it for few years.

If I was to sell now for 220K what CGT would we have to pay. 
I understand there is something about buying in that year and keeping it for 4 years,

Thank you in advance


----------

