tax on sale of investment property

[granda]

I recently sold an investment property (house) in which i had a 50% share, i used the money to buy a holiday home, do i have a tax liability on the transaction?

granda

 

[!RAY]

Hi Granda
I am sorry to say that i think you are liabel for tax at 20% on any profit after the first 1,250 or so euro. You can deduct any losses on the property from the profit you made.
Ray

 

[bacchus]

I recently sold an investment property (house) in which i had a 50% share, i used the money to buy a holiday home, do i have a tax liability on the transaction?

Yes, you need to pay CGT on the property you just sold.
Threshold mentionned by IRAY is €1270 (£1000 punts) per individual, so €2540 if married.

 

[RainyDay]

I'm surprised that the solicitor that handled the sale didn't discuss CGT with you.

 

[tosullivan]

I'm surprised that the solicitor that handled the sale didn't discuss CGT with you.

I'm not....half of them are not bothered as they don't have to submit the CGT forms on their clients behalf.

 

[granda]

if the new investment property was for letting and not a holiday home for own use, what affect (if any) will this have on my tax liability?

 

[Luternau]

if the new investment property was for letting and not a holiday home for own use, what affect (if any) will this have on my tax liability?

Absolutely none. CGT is due on the disposal of the asset. Even if you re-invest it, the liability is due on the gain from the previous investment. Up to a few years ago a tax on a gain could be rolled over by reinvesting 100% of the gain immediately.