Capital Gains Tax Calculation Query

[Dodger30]

Hi,

I’m considering selling a rental property that I bought in 2000 for €136k.
I expect to sell it for €250k and my query is how do I calculate how much CGT I’ll have to pay on the sale.

Thanks

 

[Gordon Gekko]

Hi,

I’m considering selling a rental property that I bought in 2000 for €136k.
I expect to sell it for €250k and my query is how do I calculate how much CGT I’ll have to pay on the sale.

Thanks

It depends on whether you ever lived there, what expenses you incurred buying, selling, or enhancing it, and the indexation rate from 2000 to 2003.

 

[jpd]

The maximum taxable gain is € 250,000 - € 136.000 = € 114,000 and taxed at 33% gives € 37,620

As Gordon mentioned - there are various other expenses, etc that come into the calculation and that might reduce the taxable gain

 

[Dodger30]

It depends on whether you ever lived there, what expenses you incurred buying, selling, or enhancing it, and the indexation rate from 2000 to 2003.

Thanks,

I lived in it myself from 2000 to 2003. I did spend some money on insulation and new windows but as it was so long ago, I have no receipts for these expenses on file.

 

[mct1]

You could qualify for indexation (inflation) relief on costs paid before Dec 2002. https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/inflation-relief.aspx

Also if you bought in punts don't forget to convert to Euro. Useful calculator here https://www.auctioneera.ie/capital-gains-cgt-tax-calculator. I'm not sure it includes indexation but you can insert the period you lived there for.

 

[T McGibney]

Thanks,

I lived in it myself from 2000 to 2003. I did spend some money on insulation and new windows but as it was so long ago, I have no receipts for these expenses on file.

You shouldn't necessarily need receipts for historic expenditure.

Seriously consider getting professional advice on this