CGT on sale of investment property

M

Maximus12

Guest
Hi all, I hope someone can confirm if I'm calculating my cgt liability correctly. I purchased a house in 2000 for EUR182k. I renovated the kitchen in 2004 for EUR5k. I just sold it for EUR335k with EUR5k legal & other costs. Is this the calculation:
Sales Proceeds: 330k (335-5)
Purchase Price: 208k (182*1.144indexation)
Kitchen:5k
Capital Gain: 122k
Capital Gain adjusted for own occupency: 24,400 (122/7.5 years*1.5 years) (I have taken the last 12 months as deemed occupency - is that correct?)
Less Personal Exemption: 1,270
Chargeable Gain: 23,130
Tax Due @ 20%: 4,626

Thanks...
 
Maximus12 said:
Capital Gain adjusted for own occupency: 24,400 (122/7.5 years*1.5 years) (I have taken the last 12 months as deemed occupency - is that correct?)
Click to expand...
Was it bought as an owner occupied PPR? When and for how long did you occupy it as your PPR? Were you liable for a clawback of SD on first rental?
 
It was bought as an owner occupied PPR. I occupied it from purchase date in 2000 until June 2005. It has been rented out since June 2005. I paid full stamp duty on purchase date so no claw back required...
 
Seems about right

Stamp duty afaia can be included as a purchase expense
Also include legal fees
You can also index link these expenses

You should calc to the nearest month (afaia revenue calc this way and don't actually calc in days yet) rather than half year unless you bought in June 2000
 
Maximus12 said:
Sales Proceeds: 330k (335-5)
Purchase Price: 208k (182*1.144indexation)
Kitchen:5k
Capital Gain: 122k
Click to expand...
Not sure if you caught the kitchen in that calculation. The doing up of the kitchen may be enhancement expenditure. If this is the case then the gain before PPR adjustments and annual allowance is:
€330k - (€208k + €5k) = €117k
 
Excellent, not too much of a tax hit then, thanks.
 
Just a question Maximus, where did you get the 1.144 indexation figure?
 
Here:

[broken link removed]

[broken link removed]

If the property was bought before May 2000 then the multiplier should be 1.193 rather than 1.144.
 
Just a small point "if the property is bought before or on 5th April 2000 then the multiplier should be 1.193 rather than 1.144."
 
Thanks for the correction on that. I was working on an old tax year end date of April 31st - I forgot that it used to be the 5th.
 
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