Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Selling a Holiday Home - CGT

Options
  • 25-11-2008 10:20am
    #1
    killerwatt
    Closed Accounts Posts: 13 ✭


    A guy owns two houses.
    Where he lives bought at 320 now worth 400
    A Second Home bought at 210 now worth 350

    It doesnt take a math genius to work out that theres more CGT to pay on the second home if both are sold.

    The owner wants to sell both and roll it into one larger property.
    More CGT is payable on the second home above. And theres probably some leeway to make the house worth 400 his holiday home to optimise the CGT..

    Question: Does anyone know of a rule or way eliminate the CGT because the new house is the primary home of the family?

    Any advice appreciated.
    Tagged:


Comments

  • Options
    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Live in the second house for whatever period is necessary to establish it as his PPR, before selling both properties? (though I guess this is not possible?)

    Does he have any other assets that he could offset the CGT against (shares have fallen massively for example). He might be able to book a paper loss on another asset- in order to reduce his CGT exposure?


  • Options
    #3
    killerwatt
    Closed Accounts Posts: 13 ✭killerwatt


    Thats practical advice. Thanks.

    Over a few beers other advice included:
    - register as separated couple (dont know how) and have one primary residence for husband and second primary residence for wife and kids.

    - after a couple more beers the suggestions got even worse.

    If anyone has other ideas please post!


  • Options
    #4
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    So you've made 220k profit and will have to pay 28k cgt or <13% How much would you have to pay if through your labour you earned 220k at a mid 40's rate of tax

    there was indexation relief for cgt until a few years ago, if your second house was bought years ago


  • Options
    #5
    killerwatt
    Closed Accounts Posts: 13 ✭killerwatt


    Honestly Carawaystick - nobody is going to help you keep your money in your pocket. Only try to take it away, whether through taxes, management fees, levies or any other means they can think up to drain your hard earned cash. If you arent taking care of this then you're just throwing your own money away.

    The price of a house should never be considered making money, until you have passed out of the market.
    I'm sick to death of people qouting (except my own reference above of course) how much their house is worth - when in reality its the market that determines how much you will take away from the sale, if you are forced to have to sell. Your house isnt worth anything more than the cost of materials and labour to put it together. Its peoples mis-informed fears that make them pay insane amounts of wealth in this country for houses and property.


Advertisement