Current investor SD on that purchase would be 4% or €8,280. I think that this was the same rate that applied a couple of years ago but check with Revenue to be sure. The SD clawback was due at the time that you first rented it so is overdue now and may be subject to interest and penalties. You should consult with a tax advisor on this matter before you submit a late return/payment.I have an apartment which I bought to live in. I chose to rent it out after a few months so it has been rented for 2 years of the last 2.5 years I have owned it. I am looking to sell now as I do not want to live in it anymore and am hoping to buy somewhere closer to my family.
The apartment was bought for 207k, currently selling for 325k.
As I did not pay stamp duty when I bought it what is total amount of claw back I have to pay now?
Roughly although you will get some relief for the time that the property was (?) your PPR and you can deduct allowable acquisition/disposal expenses and your annual CGT allowance of €1,270. Again you should check the Revenue website for details of CGT calculations and consult with an accountant/tax advisor.How would I work out capital gains tax I need to pay? Is it - profit 118k * 20% = 23,600k?
Not necessarily. Owner occupiers (FTB or not) are exempt from SD on the purchase of new properties under 125 sqm.The next place I buy I understand I need to pay stamp duty.
Yes to the first two. Maybe to the third.Does this mean I have to pay stamp duty I should have paid when I bought the first place, capital gains tax on profit made and more stamp duty on new place?
Then buy a new property - no SD.This all seems a bit much when all I want to do is buy another place that would be more suitable to live in by myself!!!
Not sure what you mean.Would it matter if I bought another place straight away and there was no break in owning a place?
No - the answer is "maybe" to the question of whether or not SD will be payable on the next PPR purchase. It will not be if the property is new and under 125sqm.The next place I buy I understand I need to pay stamp duty. Does this mean I have to pay stamp duty I should have paid when I bought the first place, capital gains tax on profit made and more stamp duty on new place? This all seems a bit much when all I want to do is buy another place that would be more suitable to live in by myself!!!
Answers: Yes, Yes and Yes unfortunately
Hi everyone, I have an apartment which I bought to live in. I chose to rent it out after a few months so it has been rented for 2 years of the last 2.5 years I have owned it. I am looking to sell now as I do not want to live in it anymore and am hoping to buy somewhere closer to my family.
You mean owner occupier mortgage interest tax relief? Were you writing interest off against rental income when filing your returns?i did not have tax relief on the morgage
You need to check if either or both of these can be considered capital expenditure and, as such, can be written off against CGT. I suspect that the driveway might be considered an enhancement of the property iteslf but the flooring might be considered fixtures/fittings and, as such, perhaps qualifying for depreciation written off against rental income. I think...and also had to build a driveway[a new bungalow],and put down some flooring,could someone tell me if any of these costs can be deducted from any profit made before cgt is applied?
CGT indexation is not available after 2002 or 2003 (can't remember the exact date) so if any indexation relief is available it will be minimal.p.s. also is indexation[inflation]allowed on the house bought in 2002.regards hopalong
no the house was not rented out.so cost €180,000,sell €315,000,leaves €135,000 less borrowings[mortgage]€100,000=€35,000@20%.or €135,000 less interest payed on mortgage €30,000 approx=€100,000@20%.are any of these sums right,regards hopalong
could someone tell me if i have my investment house sold today 22nd oct,i pay my cgt at 20%,when exactly do i pay it?on the revenue site it says in the notes on cgt "you are obliged to make return before 31st oct in the year following the tax year in which the disposal is made.e.g 2004 disposed of,must be returned by 31st oct 2005".but in later notes it gives payment dates for payments,"disposals between jan and sept 2005,are due to be payed by 31st oct 2005".
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