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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4094
Experience:  FCCA FCMA CGMA ACIS
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I took a job away from home and shortly after my husband and

Customer Question

I took a job away from home and shortly after my husband and I separated but nothing is legal we are still officially married. 8 years ago I purchased a house with a legacy from my dad. I have been renting this property out and now want to sell. It is likely that I shall lose up to 30,000 on what I paid for it because of the drop in the market. MY husband still lives in our marital home. I am not sure what would happen if he ever wanted to sell it. Would capital gains tax need to be paid on my share as I no longer live there? I wanted him to have the house as I was the one to leave. The marital home was purchased in 1990 for 81,000 and is now worth around 200,000. Do I have to pay capital gains tax if my husband ever sells, can I offset the loss on the house I want to sell against a gain in the future. We are both retired and I want my children to benefit in the future. I really am unsure of what the position is. Can I transfer my half of the marital house to my husband?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The second home you bought and rented out will, on sale, be subject to Capital Gains Tax (CGT), but as you are making a loss on that property you will have that capital loss to carry forward indefinitely against any future capital gains. This leaves you with the house you lived in with your husband as your sole or main domestic residence so you are entitled to Private Residence Relief (PRR) which is allowable at 100%. You can certainly transfer your half of the house to your husband. I do hope that you find my reply of assistance.