Capital gains tax on rental property

duefrine

Hi all

Can't find this answer anywhere,

I am thinking of renting out my current property and buying something else....

Say I purchased my current house 20 years ago for 100,000 and the current market value is 200,000..

Say if I started to let it out today and sold it in 20 years, do I pay capital gains tax on the purchase price or the market value today ?

Any help appreciated

reactadabtc

The difference between the price you paid for it and the price you sold it for is your capital gain. If you sell your house for 200K, and you paid 100K for it your capital gain is 100k.

Paid: 100K

Sold: 200k

Gain: 100K

CGP @ 33% = 33K

Less tax credits of 1270

Tax Due: 31730.

paulos

If you have lived in the property for the last 20 years then you can gain relief for those years.

Paid; €100,000

Sold; €200,000

Gain; €100,000

Less relief; lived in property for 20 years of 40 so gain is reduced by 50% or €50,000

less personal exemption €1,270

Taxable gain; €48,730

Tax due @ 33% ; €16,080

Revenue have a good page on it that gives examples too on there website

duefrine

https://www.boards.ie/discussion/comment/121695641#Comment_121695641

Thanks for that, good to here, it makes my decision to let it out, even easier.....

Thanks for the reply.