capital gains calculation-help!

HI folks
Need clarification on this as have received a few different answers.
For the purposes of the query - Bought property one in March 2002 say for 100k ( I wish !!)was my first house purchase and I lived in same until November 2006 as PPR. Say CMV is 250k ie selling price
Bought House no 2 and moved in November 2006 title deeds lodged at this point so I believe this date is relevant.
Considered renting Property No 1 but then decided against this and put it up for sale - had lots of viewings and one offer which I accepted but buyer pulled out unfortunately.
My problem now is I believe I will be liable for CGT as 12 month exemption will end for me on November 16th - is this correct ? If so in plain simple terms how do I determine my CGT liability?
I believe also i can deduct costs such as legal fees, advertising associated with the sale of Property No 1 what about the legal fees I incurred when purchasing Property no 1 initially are these allowable ?
I have probably confused you all but I would appreciate your advice !!
Thanks

materialgirl said:

My problem now is I believe I will be liable for CGT as 12 month exemption will end for me on November 16th - is this correct ?

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I think so. Once you don't dispose of it within 12 months then some portion of any eventual resale capital gain becomes assessable for CGT. But don't worry - it may not be significant.

If so in plain simple terms how do I determine my CGT liability?

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Say you occupied a property as your home for exactly 4 years (48 months) and then vacated it and sold it 16 months later (i.e. 4 months over your the additional 12 months CGT exemption period) then (in rough terms) you would be liable for CGT on 4/64 = 6.25% of any gain arising.

I believe also i can deduct costs such as legal fees, advertising associated with the sale of Property No 1 what about the legal fees I incurred when purchasing Property no 1 initially are these allowable ?
I have probably confused you all but I would appreciate your advice !!
Thanks

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There are a bunch of expenses that are allowable against CGT when doing your return but you might need to check up the details with Revenue and/or get professional advice on specifics. Don't forget your annual CGT allowance of €1,270 (x 2 if you own the property jointly).

In short - don't panic as your CGT liability may not be that significant.

The legal fees you incurred on purchasing Property 1 will be an allowable cost for CGT purposes.

Thanks to you both for your replies appreciate your advice... its a lot clearer now thanks