Should I sell?

JackyS

Registered User
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Hi, first time poster so apologies if I have this in the wrong section, hopefully not. My situation/question is this - I have a property in Killdare with tenants in it, they pay the rent on time and are excellent tenants. After the mortgage is paid I have an income from the rent of around €450 per month. It is on a tracker mortgage and only has about 100,000 to pay over about 14 years left. I got married last October and we are in a rented house, which we now have to leave by august as it is being sold. We can’t afford rent so have actually just gone sale agreed on a house in Crumlin and have did not need to sell the house in Killdare to finance it. My question is if I do not sell now (as I was advised not to by an independent estate agent) will I be liable for a huge lump of tax if I do sell it down the line or when daughter inherits? I lived in it for nine years and have not lived there now for seven years. Should I sell it now quickly before we buy in Dublin? Do I need to live in it a certain amount of time to avoid capital gains tax etc? I always just wanted to leave this house for my daughter so want to do the best for her inheritance. I’ve zero knowledge on this kind of stuff so any info or advice will be very appreciated. Thanks so much in advance. J
EDIT: If it makes a difference the repayments in house in Kildare are just over €500pm and rent is €1000. (1% tracker) On the new house we will be borrowing €280, repayments about €1250pm with PTSB. Also the Kildare house would sell for around €170 now and I owe €112. Thanks :)
 
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After the mortgage is paid I have an income from the rent of around €450 per month.

Do you mean that after income tax on the full rental amount, you clear the mortgage payment plus €450?
 
You may be liable to CGT if you make a gain on the sale?

Would you make a gain if you sold the house?

It would sell for 170k. Purchase cost?
 
You may be liable to CGT if you make a gain on the sale?

Would you make a gain if you sold the house?

It would sell for 170k. Purchase cost?
Purchased for 135 and 114 left outstanding, 19yrs left on mortgage I just rang to find out exactly how long i had left. Would definitely fetch 170 if not 175. Thanks.
 
Actually no sorry, that’s before the income tax. So 450 before tax.

I do hope you've been paying tax, etc, on the income from the house over the past 7 years it has been rented. If not, you're in for a nasty surprise that will answer the question for you pretty quickly on if you should sell or not.
 
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Purchased for 135 and 114 left outstanding, 19yrs left on mortgage I just rang to find out exactly how long i had left. Would definitely fetch 170 if not 175. Thanks.

Mortgage is not relevant when calculating gain on sale.

Bought for 135k

Might sell for 170-175k.

So, yes, you will make a gain on the sale, less purchase and selling costs.

Yes, there may be CGT payable, although CGT reduced by time spent as PPR.
 
I do hope you've been paying tax, etc, on the income from the house over the past 7 years it has been rented. If not, you're in for a nasty surprise that will answer the question for you pretty quickly on if you should sell or not.
Yes I’ve been paying tax obviously, the whole time.
 
Mortgage is not relevant when calculating gain on sale.

Bought for 135k

Might sell for 170-175k.

So, yes, you will make a gain on the sale, less purchase and selling costs.

Yes, there may be CGT payable, although CGT reduced by time spent as PPR.
That’s place of primary residence is it?.. how would I work that out ie where would I look to find out re time spent in house and how that affects CGT please? I take it you mean it depends how much time you spent living there affects your overall CGT when you sell yes?..
 
That’s place of primary residence is it?.. how would I work that out ie where would I look to find out re time spent in house and how that affects CGT please? I take it you mean it depends how much time you spent living there affects your overall CGT when you sell yes?..

See here. You get relief from CGT for the portion of time it was your PPR.
 
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