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

How does tax work with seller financing?

Options
  • 20-02-2012 3:34pm
    #1
    summereire
    Registered Users Posts: 299 ✭✭


    Obviously I'm going to go to an accountant and my solicitor about this, but I'm just wondering if anyone has any experience or could point out any resources on seller-financing in Ireland.

    I think I totally get it apart from when tax gets paid? Is it that the CGT for the whole amount is seen as due on the day the contract is signed, even though the amount is being paid back over years? And is all the stamp duty due by the buyer on that same day?

    Or is it that it's seen more like leasing, with the property only entering into the buyers name when the last amount is paid off, and tax due then? I can't find anything on Revenue's website to state either way.

    Any indicators of how this is typically done are very much appreciated.


Comments

  • Options
    #2
    antoinolachtnai
    Registered Users Posts: 9,791 ✭✭✭antoinolachtnai


    I'd imagine it depends on when exactly the title is actually transferred. I'd suspect that happens after the last payment, but I don't really know. One for your solicitor and accountant for sure.


  • Options
    #3
    Gloomtastic!
    Registered Users Posts: 8,468 ✭✭✭Gloomtastic!


    Didn't developers get around paying stamp duty on land purchases until after they'd sold all the units by delaying transfer of title to the end? I thought they'd closed that loophole since.


Advertisement