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CGT on selling apartment.

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  • 27-02-2017 1:34pm
    #1
    mickmac76
    Registered Users Posts: 400 ✭✭


    Hi, I'm looking for advice on whether I will have to pay capital gains tax when I sell my apartment. I bought the apartment in 2006 for €175000 and lived in the apartment until last year when I started to rent it out. The apartment was valued then at €105000 as it lost a lot of value during the financial crises.

    I was intending to rent it out for around 5 years and will sell it then. When calculating the CGT tax due I taught it would be based on whether the selling price exceeded my original purchase price. Now I'm wondering is the tax due on the selling price exceeds Its value when I started to rent it out.

    Does anyone know how the CGT is calculated in this instance.


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    #2
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    I thought it was on the purchase price, I bloody hope so anyway!


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    #3
    RobbieHawkins
    Registered Users Posts: 49 ✭RobbieHawkins


    If you sell the Appt for less than the purchase price, then no CGT is due. You will also be able to offset this loss against any future CGT liability.


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    #4
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    RobbieHawkins wrote: »
    If you sell the Appt for less than the purchase price, then no CGT is due. You will also be able to offset this loss against any future CGT liability.

    Oh you beauty - do you know if there is any time limit on that?


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    #5
    CIARAN_BOYLE
    Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    CGT is based on the purchase cost.

    Be careful when it comes down to claiming losses forward. PPR relief must be applied to the losses.
    Relief can be carried as far into the future as you want.


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    #6
    RobbieHawkins
    Registered Users Posts: 49 ✭RobbieHawkins


    Samuel T. Cogley wrote: »
    Oh you beauty - do you know if there is any time limit on that?

    I don't think there is a time limit but not 100% sure


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    #7
    CIARAN_BOYLE
    Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    RobbieHawkins wrote: »
    Samuel T. Cogley wrote: »
    Oh you beauty - do you know if there is any time limit on that?

    I don't think there is a time limit but not 100% sure
    If you are a chargeable person the losses must be included annually in your Form 11 in the capital gains section. Other than that there is no limit to how far you can carry forward losses.


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    #8
    cloloco
    Registered Users Posts: 70 ✭✭cloloco


    mickmac76 wrote: »
    Hi, I'm looking for advice on whether I will have to pay capital gains tax when I sell my apartment. I bought the apartment in 2006 for €175000 and lived in the apartment until last year when I started to rent it out. The apartment was valued then at €105000 as it lost a lot of value during the financial crises.

    I was intending to rent it out for around 5 years and will sell it then. When calculating the CGT tax due I taught it would be based on whether the selling price exceeded my original purchase price. Now I'm wondering is the tax due on the selling price exceeds Its value when I started to rent it out.

    Does anyone know how the CGT is calculated in this instance.


    No CGT unless there's a gain. No CGT if its your principal private residence. Otherwise its CGT @33% on any gain/profit after deducting expenses e.g. cost of acquiring property. You also get 1,270 exempt from CGT every year and can offset any other investment losses against your gain too.


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    #9
    mickmac76
    Registered Users Posts: 400 ✭✭mickmac76


    That's great news thanks to everyone who replied.


This discussion has been closed.
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