Capital Gains Tax on gifted site/dwelling.

ShiverinEskimo

Hi,

Looking for advice/options on the following scenario.

The missus' Mum owns a small dwelling and surrounding garden - it's the house she grew up in until moving out of when married.

The missus's grandad was living in the house up until he died in October 2009 and since the house and surrounding site is now free the missus's Mum offered it to the missus for us to develop.

We got it valued and it came in at 115,000 euro. We plan to level the house, acquire more land to the rear (already agreed with the adjacent landowner) and replace the house with a more suitable dwelling.

Our solicitor has highlighted the potential Capital Gains Tax which the missus' mother may be liable for.

The house and land was signed over to the mother some years ago (about 15 to 20 to my current knowledge) but the house remained the primary residence for the grandfather up until he died.

Can anyone tell me if the above scenario - given that he was a dependant (the mother cared for him at the house on a daily basis) means it might be exempt from CGT or is the mother (and in turn, we) going to get hit with a heavy whack of tax in taking this from her? Obviously the dwelling and surrounds are a gift so no money is changing hands. The valuation above was only done recently.

I'm unsure as to the valuation of the land when it was signed over to the mother originally 15/20 years ago. We're trying to dig that out - if it even was valued at all.

Any advice is very much appreciated.

Mr. Incognito

Thread closed.

Twenty four hour ban.

r3nu4l

Permanent Ban accidentally applied by Mr. Incognito and now manually lifted. Sorry for the delay.