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CGT as a result of gift query

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  • 15-07-2005 2:15pm
    #1
    davidoco
    Registered Users Posts: 656 ✭✭✭


    Would anyone know if the following is correct

    Acquistion was GIFTED from uncle in 2000 (plot of land) worth 30,000 euro. Small bit of gift tax paid at the time.
    Disposal now of that plot for 50,000 euro
    Is the origianal "cost" of 30,000 allowed in calcuation
    for example 50,000 - 30,000 therefore gain of 20,000 (less of course the multipliers and exceptions).


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    #2
    MG
    Closed Accounts Posts: 823 ✭✭✭MG


    davidoco wrote:
    Would anyone know if the following is correct

    Acquistion was GIFTED from uncle in 2000 (plot of land) worth 30,000 euro. Small bit of gift tax paid at the time.
    Disposal now of that plot for 50,000 euro
    Is the origianal "cost" of 30,000 allowed in calcuation
    for example 50,000 - 30,000 therefore gain of 20,000 (less of course the multipliers and exceptions).

    If I understand you correctly, you are correct - the gain is 20k. The rationale is that you have already paid tax on the original 30k. To tax it again would be double taxation. Certain selling fees might also be deductable.


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