Tax liability on sale of gift

E

Elginelf

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Hi, my partner is in the process of selling a site that was gifted to him by a relative some years ago. We're attempting to calculate the tax liability on it. I would appreciate if those of you 'in the know' could cast an eye on it and make sure it's correct.

The sale price received is 45K
The cost of selling is €2,560.25 (auctioneer and legal fees)
Back when he was gifted the site he had to go to court to secure title. The cost was €11K.

We have worked out the tax as follows:
Sale price: €45,000
Less costs of selling: €2,560.25
Less cost of establishing title: €11,000
Less €1,270 annual exemption from tax

Implies €29,474.75 taxable income
Tax at 33%: 9,733.27

Thanks in advance for any feedback.
 
What was the date of the gift, and what was the date of payment of 11k to get title
 
Hi Vanilla,
It was gifted in 2007 and the legal case concluded in 2009 - that's when the payment to get title was made.
 
Apologies, we're trying to figure out if it was 2006 or 2007 it was gifted. If it makes a difference we can find out for certain which year.
 
You will probably save money here by getting proper professional advice. If you persist in doing it yourself, you are most likely to shortchange yourself.

For example, you haven't included in your figures, the market value of the site on acquisition (and unless it's on top of a mountain, I guarantee you that it was much higher than 6k).
 
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