Inheritance tax

tricky D

Lucy and Harry wrote: »

Would it be better when you know you are dying to sell your house for a euro to the person you are leaving a house too and stop the government getting cash

Taxman says no. They'll tax you at the estimated market value.

Spanish Eyes

oppenheimer1 wrote: »

Inheritance tax is vitally important in a country that wants to see itself as socially progressive. Without it you would see the rich getting richer and the poor getting poorer, since it is a redistribution tax at its purest. The key to becoming wealthy is raising capital. If you have access to to all the assets accumulated by a lifetimes work by your wealthy parents you have a massive headstart on those that don't. Over generations this leads to the concentration of wealth in the hands of the few.

I agree.

However, in this country, there are so many opportunities for the wealthy (and Farmers) to legally avoid Inheritance tax that it will always be the squeezed middle paying the most again.

For example,

1. A wealthy person has five children. None of the children own a house themselves. Parent buys five houses worth five million each Each child lives in the house for 3 years prior to the parent gifting or bequeathing the property to child. Provided child lives in the house, or a replacement house of the same value for five years, the gift/inheritance is tax free! And it doesn't only apply to children either, anyone can be a recipient of this kind of largesse, provided they meet the rules.

The fact that there is no upper limit on the value of a property in these circumstances enables the super rich to pass millions on to their kids, grandkids, maids, grooms, mistresses and so on tax free. Get it? But that's Government policy. Will it change? Maybe a cap on the value of a house? But this relief has been in place for years, and no real changes to it yet. Qui bono?

2. A wealthy farmer or ordinary person can leave any kind of property, and that means ANY class of asset to a beneficiary with the proviso that they invest the asset in Agricultural Property within two years of the date of the gift or inheritance. Provided the recipient meets the Farmer Test for Agricultural Relief (College going kids with no tangible assets will, or they can make sure they do!), then the gift or inheritance is tax free. They have to buy the Agricultural property and hold on to it for six years, or ten if the land has development potential, but you can see the advantages!

There are many more ways to minimise inheritance tax. For those who know, or can afford the very best advice.

My number is..... lol!

holyhead

Clearlier wrote: »

The government didn't take the money from the deceased, they took it from the nephew.

This double tax argument is ridiculous. As far as we know the nephew did nothing to earn this money. He got it because he happened to be related to the deceased. I have no understanding why anybody would think that they should be allowed to inherit without paying tax on it. It promotes non-meritocratic inequality (which I can't see any argument in favour of).

Not a fan of Sinn Fein but if they're saying that inheritance tax is too low then they've got at least one sound policy.

The double tax argument is not ridiculous. If the house has been legally acquired by his late Uncle, then the state should have no interest in the house unless it is subsequently sold, as it had to be by the nephew to meet an inheritance obligation.

almae34

Hi does anyone know how the below would be liable to taxes.

Father has passed away and has requested in his will that the land and house be sold and divided by his 4 children . They will be sold in separate lots.

This will approx give each child 220k between the sale of the house and land.

Are each child liable to CAT or CGT.

2 of the children where given a site from the late father which was not declared at the time. Would this make a difference to there entitlement or taxes owed. ?

Confused.

ytpe2r5bxkn0c1

almae34 wrote: »

Hi does anyone know how the below would be liable to taxes.

Father has passed away and has requested in his will that the land and house be sold and divided by his 4 children . They will be sold in separate lots.

This will approx give each child 220k between the sale of the house and land.

Are each child liable to CAT or CGT.

2 of the children where given a site from the late father which was not declared at the time. Would this make a difference to there entitlement or taxes owed. ?

Confused.

You need to talk to a solicitor, as we can't give legal or financial advice. But, look up the allowances for inheritance tax. Any gifts previously given, like sites, would have to be deducted from this as would any inheritance from your mother, if there was any.

almae34

Thalia Gentle Mouth wrote: »

You need to talk to a solicitor, as we can't give legal or financial advice. But, look up the allowances for inheritance tax. Any gifts previously given, like sites, would have to be deducted from this as would any inheritance from your mother, if there was any.

Thank you.

holyhead

eyescreamcone wrote: »

If I bought a second property and later sold it on, I'd be taxed on the profit.

If I inherit a property I'll also be taxed on the profit I make.

I don't see the difference here.

You can only make a liquid profit by selling it. So you will face both inheritance and sales tax.

L'Enfer du Nord

Will Irish politicians and voters ever make the leap and demand a reduction in govt. spending?

You can argue about this or that tax, but realistically unless government spending is reduced tax isn't going to go down.

Republicans in the US realise this and this is one reason they are in favour of small government.

Thankfully in my opinion this idea hasn't taken hold in Ireland. Perhaps it never will, but at some point those claiming this or that tax is unfair will realise that politicians are going be slow to cut one tax if they have to raise an other and the only way their over all tax bill will be going down is if government spending is cut. Social welfare recipients and government employees are usually first in the firing line when this happens.

Can't really see it happening here anytime soon but you never know.

holyhead

KomradeBishop wrote: »

No not really, the child is not entitled to it. If anything, there should probably be an upper-end cap on the amount of wealth that can be transferred.

Just like all the right-wingers say: If you want to become wealthy, go out and earn it. Kind of have to have a massive sense of entitlement, to think you deserve wealth in return for doing fúck all - and many of these same people would begrudge dole recipients! :rolleyes: So if you want to talk about jealousy/begrudgery...

Why is the child not entitled to it if it is a parents request. Who are you to say they are not entitled?

Zebra3

L'Enfer du Nord wrote: »

Will Irish politicians and voters ever make the leap and demand a reduction in govt. spending?

You can argue about this or that tax, but realistically unless government spending is reduced tax isn't going to go down.

Republicans in the US realise this and this is one reason they are in favour of small government.

Thankfully in my opinion this idea hasn't taken hold in Ireland. Perhaps it never will, but at some point those claiming this or that tax is unfair will realise that politicians are going be slow to cut one tax if they have to raise an other and the only way their over all tax bill will be going down is if government spending is cut. Social welfare recipients and government employees are usually first in the firing line when this happens.

Can't really see it happening here anytime soon but you never know.

Yep, copying American Republicans is the way to go.

Which country would you propose we start bombing?

Shall we let the religious nutters back in to take control of the country as well?

L'Enfer du Nord

Zebra3 wrote: »

Yep, copying American Republicans is the way to go.

Which country would you propose we start bombing?

Shall we let the religious nutters back in to take control of the country as well?

Thank you for your insights.

I'm not advocating following republican tax and spending policies. I'm merely pointed out that it's next step after complaining that taxes you are liable for should be abolished. I hope these policies aren't followed here as I said in my original post.

So it's a strange leap to ask me what country I think we should start bombing. Kind of like if I said we shouldn't have 5 year plans like the Soviet Union and you asked me who I thought should be sent to the Gulag.