Inheritance tax- house from parent

lotusm

Hi,

My mother is gifting her house to me and she will still reside in a granny flat ajoining the building. At the moment we are renting a house nearby while the house it being renovated. I currently rent out a house I own.
The current vlue of my mothers house is €100k. I know the treshold is around €280K. However is thereany implications because its a house that is being gifted to me . Does it matter also that I own a house already... thanks

coylemj

Gifts and inheritances are treated the same so the threshold will apply and it doesn't matter if you already own a house.

Should your mother win the Lotto in the meantime and leave you 500,000 in her will, your tax-free threshold of 280,000 will be reduced by the value of the gift you received several years earlier so on her death the threshold will be 180,000

runnerholic

AFAIK you will be hammered for tax if the house is gifted to you as the tax free threshold for gifting is very small.

newbie2

runnerholic wrote: »

AFAIK you will be hammered for tax if the house is gifted to you as the tax free threshold for gifting is very small.

Eh, the tax free threshold for gifting to son/daughter is €280k. (over a number of years)

The OP has already stated that the house is worth €100k.

The Op will have to pay income tax on earnings from his/her original house ( that they are currently renting out) as it is not their primary residence.

makes no difference if the gift ks property or not.

http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

hullaballoo

Moderator:

Taxation is a very specialised area of law and you would be best to instruct a solicitor, which you will likely need for the transaction in any event, in order to ascertain what CAT liability might fall to you as a result of the transfer.

Thread closed.