Inheritance Tax???

cathorio · 01-01-2014 1:26pm #1

I need to know if my sister who has lived all her life in the family home (57years), will be expected to pay Inheritance Tax. The house has been willed to her by Mum.

Pro Hoc Vice · 01-01-2014 4:13pm

Google is amazing, http://www.revenue.ie/en/tax/cat/leaflets/cat10.html

In any event there are thresholds

http://www.revenue.ie/en/tax/cat/thresholds.html

cathorio · 01-01-2014 4:20pm

Believe it or not I did " Try Google" + Revenue!

cathorio · 01-01-2014 4:22pm

If we were all to Google info then Boards.ie would become redundant!

Pawwed Rig · 01-01-2014 4:23pm

Probably better for you to ask a professional as tax is very individual for each person based on their particular circumstances but in a general sense look up dwelling house exemption and the relevant bands. Her tax advisor will be able to tell her if she qualifies for either.

cathorio · 01-01-2014 4:28pm

My sincere appreciation.

Atlantic Dawn · 01-01-2014 4:29pm

Looks like she is exempts once she it living there for the last 3 years...

www.revenue.ie/en/tax/cat/leaflets/cat10.html

Pro Hoc Vice · 01-01-2014 4:31pm

Atlantic Dawn wrote: »

Looks like she is exempts once she it living there for the last 3 years...

www.revenue.ie/en/tax/cat/leaflets/cat10.html

Not that simple,

Gifts taken on or after 20 February 2007: Any period during which a donee occupies a house that was during that period the disponer's only or main residence will be disregarded as a period of occupation in that house unless the disponer is compelled, by reason of old age or infirmity, to depend on the services of the donee for that period. Old age refers to a person aged 65 or over.

But in this case I think we can assume that the mother was over 65 as person lived in house for 57 years,

cathorio · 01-01-2014 5:21pm

It's a "Minefield" !!!
My question is, if she ( my sister. ) has resided there all her life can it therefore be classed as a gift?? It is in fact her place of residence.
I very much appreciate your interest in my question.

Pro Hoc Vice · 01-01-2014 5:26pm

cathorio wrote: »

It's a "Minefield" !!!
My question is, if she ( my sister. ) has resided there all her life can it therefore be classed as a gift?? It is in fact her place of residence.
I very much appreciate your interest in my question.

A gift and inheritance are both liable for tax. As a daughter getting a gift or inheritance she can get €225,000 with out having to pay any tax.

There is also a relief for a person who has been residing in the property for more than 3 years. Since 2007 the 3 years is only counted if the person inheriting is living with the person because of their old age or they require care.

cathorio · 01-01-2014 5:33pm

She looked after both my parents. Dad, (RIP) with Cancer and Mum with Alzheimers.

Inheritance Tax???

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