Selling gaff for 500,000.....

irishguy1983

My aunt and uncle in law inherited a gaff off his mother and they are selling it for 500,000.

He has a job and earns about 50,000 a year (not sure if that is relevant).

Now I know they will have to pay inheritance tax and some other stuff like that but can anyone actually tell me how much cash will they actually get? How much cash will go into their hand so to speak?

Before anyone asks yes I am being nosey.

davo10

irishguy1983 wrote: »

My aunt and uncle in law inherited a gaff off his mother and they are selling it for 500,000.

He has a job and earns about 50,000 a year (not sure if that is relevant).

Now I know they will have to pay inheritance tax and some other stuff like that but can anyone actually tell me how much cash will they actually get? How much cash will go into their hand so to speak?

Before anyone asks yes I am being nosey.

You should post in the finance/accountancy forums. But phrase your post, "if I inherit a house worth €500k, how much goes to revenue after sale"

Santa Cruz

Was the property willed to both or to an individual?
For parent to child you can get €225000 before you hit tax at 33% but for brother/sister the threshold is quite low.
Check Revenue.ie for inheritance tax rates

The bottom line here of course is that people should get good financial advice and try and get as much of their estate off side before Revenue takes it in tax

The_Conductor

The €225000 inheritance limit- is over the lifetime of the person- so if the person received any inheritance (a disbursement worth over €5000 previously)- the €225000 limit is reduced by a commensurate amount.

If the parent was in a nursing home under one of the state schemes- this could also come out of the proceeds of the sale of the property.

It really depends on circumstances- there could be as much as 400k- or as little as nothing whatsoever.

Just because someone inherits a property- does not mean that there are no debts that have to be discharged against the property. These days- its quite normal for there to be significant nursing home debts to be discharged- thankfully they tend to be capped at the market value of the property- that is, there is no further call on relatives to pay accrued debts- other than the realisable value of the estate.

You are being nosy. Your aunt and uncle may be coming into a little money- or they may not be getting anything whatsoever. Just because they inherited a house and are selling it- means absolutely nothing whatsoever.

irishguy1983

Santa Cruz wrote: »

Was the property willed to both or to an individual?
For parent to child you can get €225000 before you hit tax at 33% but for brother/sister the threshold is quite low.
Check Revenue.ie for inheritance tax rates

The bottom line here of course is that people should get good financial advice and try and get as much of their estate off side before Revenue takes it in tax

Just went to uncle in law but obviously tis kind for them both if ya get me....

House was completely paid off - no nursery home debt or anything like that....

So the first 225,000 is completely tax free??

The_Conductor

irishguy1983 wrote: »

Just went to uncle in law but obviously tis kind for them both if ya get me....

House was completely paid off - no nursery home debt or anything like that....

So the first 225,000 is completely tax free??

You cannot assume the 225,000 is tax free- it may be, it may not be- it depends on other factors- not leastly whether or not the uncle in question was ever gifted anything from his father or mother in the past.

It really is none of your business though.........

irishguy1983

The_Conductor wrote: »

You cannot assume the 225,000 is tax free- it may be, it may not be- it depends on other factors- not leastly whether or not the uncle in question was ever gifted anything from his father or mother in the past.

It really is none of your business though.........

Whether tis my business or not is none of your business. You seem to be quite irked by this thread - I would suggest that is more to do with yourself than me.

The_Morrigan

irishguy1983 wrote: »

Whether tis my business or not is none of your business. You seem to be quite irked by this thread - I would suggest that is more to do with yourself than me.

We'll have less of the attitude please

irishguy1983

The_Morrigan wrote: »

We'll have less of the attitude please

To be fair and without sounding childish I think the attitude was brought to my doorstep first.

I clearly admitted I was being nosey in my first post. Either way the personal comment were not needed - I was looking for info - not personal comments about me....

The_Morrigan

irishguy1983 wrote: »

To be fair and without sounding childish I think the attitude was brought to my doorstep first.

I clearly admitted I was being nosey in my first post. Either way the personal comment were not needed - I was looking for info - not personal comments about me....

Don't argue with a mod instruction on thread.

Now, if we can all get back on topic.
Thanks

Morri

MouseTail

irishguy1983 wrote: »

To be fair and without sounding childish I think the attitude was brought to my doorstep first.

I clearly admitted I was being nosey in my first post. Either way the personal comment were not needed - I was looking for info - not personal comments about me....

And the Conductor gave you the comprehensive answer.

Mrs OBumble

You also don't know:

What your uncle / aunt may owe to the revenue for other types of tax, ie the cash from the house may just be used to wipe out their other debt.

What expenses they incur in selling it, ie if they have to do any fix-up work to make it saleable, or spend on marketing if it's a less desirable area.

The local property tax status of the property.

What they actually do with the chunk of cash they get, ie they may give away a substantial amount.