Invoice for work done in previous year

S

spideryartic

Guest
Hi.
I renovated a house myself and I want to claim my labour against CGT.

If I did the work in 2005 and 2006, can I bill myself for this work in 2007 and 2008?

Is the liaiblity only incurred when the bill is received?

Thanks
 
You can't do business for yourself and so can't invoice yourself for work done.
 
From the standpoint of the Revenue Commisioners; If I made a profit on a house I sold in 2007, can I retrospectively pay myself for the renovation work I did in 2006?

I am only doing my taxes for 2006 now.
 
You can't pay yourself anything - you are you, so physically impossible to do this.

You calculate the taxable gain on the proceeds less the costs - your time and labour does not have any cost - and pay Capital Gains tax on this gain.

However, you may have been trading if you built to sell, so liable to income tax - not CGT. But you still can't pay yourself for time and labour.

Get professional advice to calculate CGT or income tax correctly.

www.taxingtimes.ie
 
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