Disposing of an asset and Capital Gains Tax

[Bgirl]

I have done a quick search and can't find another similar query so apologies if this has been answered before.

I intend to dispose of a property in January (hopefully) and need clarification on the CGT aspect of it. I wouold hope to make a €50K profit on the transaction and know that this attracts 20%. Are solicitors fees and estates agents fees taken in to consideration - in other words if my fees come to €10K will I have to pay 20% on the €50K or the €40K. Thanks.

 

[daveyboy]

Obviously, this is not your primary place of residence, as you don't pay CGT on your "home" as such.

You can take away fees incurred at the disposal end and fees when you acquired the property. You can also take away auctioneer fees, and any stamp duty paid and expenditure incurred (get receipts)in enhancing the value of the property (eg, rewiring cost or plumbing etc) and you shouldn't forget that you get an exemption of €1,270 also. Depending on when the property was bought you may also get an indexation relief.

Revenue have forms on this type of thing on their website.
http://www.revenue.ie/leaflets/cgt1.pdf

an accountant or a solicitor will be able to ensure you pay the smallest amount possible.

Remember that no-one will buy your property without the promise of a CGT Clearance Certificate, so it needs to be sorted.

 

[Bgirl]

Excellent that is just the info I was looking for. Its not my primary residence and all our tax affairs are up to date so there will be no problem with things our end. Just need to sell it now but its in a prime location so should be ok.

 

[Nige]

Remember that no-one will buy your property without the promise of a CGT Clearance Certificate, so it needs to be sorted.

A CGT clearance cert is only required if the sales proceeds exceed €500,000. Getting one is a simple matter of completing a form (CG50), ticking the box to say you are Irish resident and sending it into your tax office with a copy of the contract.

 

[Bgirl]

if only I could get €500,000

 

[tosullivan]

I just paid out over €10k in CGT...I cried into me cornflakes

 

[ClubMan]

€10K CGT means at least €40K net profit. I'd be laughing into me porridge with that myself.

 

[bacchus]

I just paid out over €10k in CGT...I cried into me cornflakes

well, €20k would have been better IMO... That would simply mean you have made a greater pre tax profit (€100k instead of €50k), and would now have €80k instead of €40k in your back pocket...

 

[bacchus]

You can take away fees incurred at the disposal end ....expenditure incurred (get receipts)in enhancing the value of the property (eg, rewiring cost or plumbing etc)

Am i correct in saying that you can only do that for the part (if any left) that has not yet been offset against rental incomes (at 12.5% per annum for 8 year)?

 

[asdfg]

Am i correct in saying that you can only do that for the part (if any left) that has not yet been offset against rental incomes (at 12.5% per annum for 8 year)?

From Reveune Website Guige to Rental Income

Capital expenditure incurred on additions, alterations or improvements to the premises unless allowable under an Incentive scheme can't be claimed against rental income

 

[tosullivan]

€10K CGT means at least €40K net profit. I'd be laughing into me porridge with that myself.

well, €20k would have been better IMO... That would simply mean you have made a greater pre tax profit (€100k instead of €50k), and would now have €80k instead of €40k in your back pocket...

I'm not knocking the fact I made about €40k profit....it was just hard to hand over the €10k CGT