If i sell let to buy property, will i pay cgt?

[challenger]

Me and my wife bought first house in 06-2005.
we lived until 02-2007.
and My wife bought second property 02-2007.
If sell first propery,will I pay cgt?

[Debs]

Possibly. You need some tax advise BEFORE selling as many factors go into working out whether you pay CGT or not. When the home is not your PPR (Principal Private Residence) you do not get PPR relief (ie the property is exempt from CGT). If however you lived in it you can claim some PPR relief. Basically this is calculated as follows:-

Gain x % of time occupied in comparison to time owned.

There are some generous "deemed occupancy periods" allowed, but these are only given if you own 1 property, so in your case you can't claim these.

Basically you need to elect (by informing the revenue) which property you are claiming is your PPR. Although it sounds like you should elect the house you are selling, it depends on what you plan to do with the 2nd, if you are plannign to sell this at some stage in the near future it may be better to elect that one as the gain on that house may be alot more than the first.

People think a Tax Accountant is expensive, and they are, but I generally save people more tax than it costs them to see me.

You have done the right thing by seeking advise BEFORE doing anything as some careful actions could save alot of tax, often people sell then ask and get told "if you had done ABC instead' it would have been alot cheaper!

To do this you should see a Tax Accountant with all the facts and figures and so they can calculate the tax on both