CGT on rental house sale

B

Blueporter

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My tenants have just given me notice after 14 year. I am unsure of renting out again or selling up.
House bought for €265,950 in 2003. Potential sale price is €400,000
It was my primary residence for 7 years. How do I calculate the CGT on this?
I am getting conflicting answers.
 
In very simple terms, based on the brief information that you've posted, you should be entitled to CGT relief in relation to the 7 years that it was your PPR and also the final year of ownership - i.e 8 years in total. So it's likely that (21 - 8) / 21 = 62% of the total gain is actually liable for CGT. As mentioned above certain expenses may be allowable when calculating the gain. And since the property was acquired in 2003 the original base cost may be indexable for inflation. The Revenue summary information linked above and the further information guides give more information. But, if in doubt, get independent professional advice.
 
Can reduce capital gains by stamp duty solicitors fees and allow for enhancements too, and y9u have the annual allowance capital gains tax too
 

Was familiar with someone in a similar situation. The person paid CGT for the years it was rented ( in your case it would be on the increase in value between 2010-2024, minus certain expenses eg auctioneers sale fees etc.) As someone else said you should be entitled to CGT relief in relation to the 7 years that it was your PPR.

However I am not sure how the property value was established for the date of changeover from Primary Residence to rental - in your case its value in 2010? Perhaps it was necessary to get a valuer to certify what he thought the property was worth at that point in time, I do not know. If you bought the house for €265,950 in 2003, and its potential sale price now is €400,000 as you estimated, its value in 2010 may only have been say €200,000 for example? Here in Dublin property prices may not have fallen as much as I think some ghost estates down the country during the crash for example. Anyway I think you will be paying more CGT for renting it between 2010 and 2024 than if you rented it from 2003 to 2024. Your accountant can best advise (and probably do the CGT return for you as well).
 
That's totally irrelevant and misleading.

Why do people persist in posting rubbish suggestions about topics about which they clearly know nothing? It's tiresome having to correct them.
 
ThursdayMorning said:
However I am not sure how the property value was established for the date of changeover from Primary Residence to rental
Click to expand...
Property value at the date of change of use is irrelevant. The only figures that matter are (A) the aquisition cost of the property and (B) the disposal proceeds of the property. A - B give you your gain on disposal. You then apportion having regard to the period of ownership — in this case, 21 years — and the length of time during that period when the property was, or is to be treated as, a principal private residence — in this case, 8 years. So 8/21 of the gain will be exempt; 13/21 of the gain will be chargeable.
 
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