Moolahasker
New Member
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Sold in 2024 | 150,000 | |
Purchased in 1991 | 50,000 | |
Indexation | 1.4 | |
Indexed cost | €70,000 | |
Capital Gain | €80,000 | |
Bob’s share 40% | €32,000 | |
PPR exemption 10/33 | €9,700 | |
Taxable Gain | €22,300 | |
Annual exemption | € 1,270 | |
Taxable Gain | € 21,000 | |
CGT at 33% | €6,900 |
Bob and the kids wants to sell the house
was sold for 150,000 in 2016
Alice then died in 2016
Sold 2018
He'll have to portion that out in the share he owns it I suppose. An interesting question then is what if it were he who paid the solicitor at the time of acquisition himself and not his wife, but still the fee paid was for 100% so I guess you'd still have to do a %.You can update the 50000 purchase price using indexation relief up to 2001 or 2002.
Also you can deduct fees for cost of acquiring and disposing before applying capital gains tax.
This will all reduce it somewhat
That's not how it's done.He'll have to portion that out in the share he owns it I suppose. An interesting question then is what if it were he who paid the solicitor at the time of acquisition himself and not his wife, but still the fee paid was for 100% so I guess you'd still have to do a %.
He clearly made an error in saying it was sold in 2016, it hasn't been sold yet, he put in 2016 instead of 2024.It's unclear to me if the house has been sold. You need to clarify this first. My calculations are based on the fact that your first statement is correct "they want to sell the house" so 2024.
That's very complicated. How does it work, using the figures he supplied us and assuming it's all euro's.That's not how it's done.
A part-disposal calculation will need to be done for the 2005 transaction - if indeed that was ever perfected.
It is indeed very complicated. It would take me at least half the morning to do what you ask. And there is no mention of what the open market value was in 2005, so you're asking the impossible of me.That's very complicated. How does it work, using the figures he supplied us and assuming it's all euro's.
Would you not also need the value for 2000, seeing as it wasn't his PPR from then either. I was only curious how it worked. It must be something that comes up regularly nowadays as divorce is much more common. It's surprising revenue doesn't have a worked example.It is indeed very complicated. It would take me at least half the morning to do what you ask. And there is no mention of what the open market value was in 2005, so you're asking the impossible of me.
No. There was no disposal in 2000.Would you not also need the value for 2000, seeing as it wasn't his PPR from then either.
I have only dealt with one similar case. Relatively recently at that. And there were bizarre circumstances in that case.It must be something that comes up regularly nowadays as divorce is much more common.
Are there none in the relevant Tax & Duty Manual?It's surprising revenue doesn't have a worked example.
That's not how it's done.
A part-disposal calculation will need to be done for the 2005 transaction - if indeed that was ever perfected.
So in 2005 when his ownership changed from 50% to a new ownership of 40%, that event should have triggered a CGT payment on the 50% over the 5 years it was not his ppr?
As part of the divorce, Bob became owner of 40% of the house, Alice retained 60% and remained in the house.
No mention of any court order though.A property was owned 50/50 (assuming).
A court ordered Bob to transfer a portion of his ownership to Alice in 2005 pursuant to the divorce (assuming).
A part-disposal calculation does not arise for Bob in 2005 (unless the transfer wasn't pursuant to a separation agreement or decree of divorce).
A chargeable gain or allowable loss does not arise in 2005 for Bob (assuming the transfer was pursuant to the terms of the divorce).
Transfer of assets and property between former partners
This page outlines the tax implications of separation, divorce and annulmentwww.revenue.ie
The Tax & Duty Manual relating to transfer of assets in the case of divorced persons is being updated (and not accessible) but the same principles apply as per the manual dealing with separated spouses.
You're being very cryptic as clearly you know there is such a thing.Are there none in the relevant Tax & Duty Manual?
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