tax on sale of investment property

G

granda

Guest
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
 
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
 
granda said:
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?
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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.
 
I'm surprised that the solicitor that handled the sale didn't discuss CGT with you.
 
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?
 
granda said:
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?
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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.
 
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