Property Inheritance Tax

stan_boy2

My Dads original family home is owned by himself and my 2 Uncles.

The house was valued at 520k by Sherry Fitzgerald and a surveyor report came back with approximately 125k worth of work needed to be done to house to bring up to standard.

My Dad and my 2 uncles have agreed to sell house to me for 450k as there is a lot of renovation work to be done. My Dad has decided to gift me his share worth 200k.

Are there any major tax implications or could there be the future seeing as house was valued at 520k but Im effectively buying it for 450k? Will revenue take into account the reduced price due to renovation cost?

Stheno

No.

Revenue will want tax paid at the value it was valued act iirc.

Where are you getting the 200k for your dad's part from?

stan_boy2

My Dads share in house is worth 200k as he has put more money into house over the years and my uncles share is valued at a combined 250k if house is valued at 450k. My Dad will gift me his share and I will need 250k to buy uncles out.

davindub

stan_boy2 wrote: »

My Dads share in house is worth 200k as he has put more money into house over the years and my uncles share is valued at a combined 250k if house is valued at 450k. My Dad will gift me his share and I will need 250k to buy uncles out.

You could optimise the transaction so well worth paying someone to go through it with you.

thejourney

Why not play them in a game of cards for the HOUSE. There is no tax on income from winnings in Ireland


You will need the following:

So with witnesses ( Accountant & Lawyer) and 2 laymen. The game must be recored on live stream. All documents should be in place. No drink or drugs involved. Sign deeds on the night.

If you win, you get the house after you pay 1% stamp duty

barneystinson

thejourney wrote: »

Why not play them in a game of cards for the HOUSE. There is no tax on income from winnings in Ireland


You will need the following:

So with witnesses ( Accountant & Lawyer) and 2 laymen. The game must be recored on live stream. All documents should be in place. No drink or drugs involved. Sign deeds on the night.

If you win, you get the house after you pay 1% stamp duty

Seeing as you like high stakes... if you're wrong he can sue you for the interest and penalty on top of his tax bill, can he?! :rolleyes:

Have to laugh at the fact that you started a thread about that topic, posing it as a question, and no-one has agreed with you that such a transaction flies... and yet you're on someone else's thread now stating it as a fact! When / how did that happen?!

I think when you ring your accountant and your solicitor (it'd be very expensive to fly in a lawyer all the way from the US of A), they'll politely decline the invitation to your card game...

thejourney

barneystinson wrote: »

Seeing as you like high stakes... if you're wrong he can sue you for the interest and penalty on top of his tax bill, can he?! :rolleyes:

Have to laugh at the fact that you started a thread about that topic, posing it as a question, and no-one has agreed with you that such a transaction flies... and yet you're on someone else's thread now stating it as a fact! When / how did that happen?!

I think when you ring your accountant and your solicitor (it'd be very expensive to fly in a lawyer all the way from the US of A), they'll politely decline the invitation to your card game...

Its facts based on the law barney. Prove I am wrong? Its just you don't like it that the rich can do this to avoid tax. Thats why we love Loopholes!!

KPMG observe the lotto. No difference to this situation.

why USA? Lots of them in Ireland

wally79

thejourney wrote: »

Its facts based on the law barney. Prove I am wrong? Its just you don't like it that the rich can do this to avoid tax. Thats why we love Loopholes!!

KPMG observe the lotto. No difference to this situation.

why USA? Lots of them in Ireland

I think he means they aren't called lawyers here

On the proposed card game I'm going to guess the 2 uncles will still want their 125k each and that a 250k mortgage is required

Even if what you propose is legal I don't think a bank will loan out 250k for a card game no matter how rigged

davindub

Aside from a ridiculous situation where a card game was recorded with an accountant and solicitor spectating, revenue are reasonably efficient at detecting more subtle avoidance measures. And that is what it really gets down to.

What they tend to do is just look at the transfer and treat it like any other transfer.

thejourney

wally79 wrote: »

I think he means they aren't called lawyers here

On the proposed card game I'm going to guess the 2 uncles will still want their 125k each and that a 250k mortgage is required

Even if what you propose is legal I don't think a bank will loan out 250k for a card game no matter how rigged

Not rigged. legal

Ok, I'll meet you half way.

In a normal situation this would work, if the father owned the whole house

thejourney

davindub wrote: »

Aside from a ridiculous situation where a card game was recorded with an accountant and solicitor spectating, revenue are reasonably efficient at detecting more subtle avoidance measures. And that is what it really gets down to.

What they tend to do is just look at the transfer and treat it like any other transfer.

Revenue most PROVE your guilty, you don't have to PROVE your not guilty.

Under Irish Law, No assumptions of guilt

barneystinson

thejourney wrote: »

Not rigged. legal

Ok, I'll meet you half way.

In a normal situation this would work, if the father owned the whole house

No, it wouldn't. See, just saying a thing on the internet doesn't make it a fact. Prove I'm wrong?

thejourney

barneystinson wrote: »

No, it wouldn't. See, just saying a thing on the internet doesn't make it a fact. Prove I'm wrong?

whooo! Barney you're a jumping jack tonight between threads. I stated the law in my post.

barneystinson

thejourney wrote: »

whooo! Barney you're a jumping jack tonight between threads. I stated the law in my post.

I see where you used the word "law", but you'll have to point me to where you "stated the law"...

davindub

thejourney wrote: »

Revenue most PROVE your guilty, you don't have to PROVE your not guilty.

Under Irish Law, No assumptions of guilt

Revenue act in isolation, they do not have to prove anything, just calculate your tax bill & penalties.

Not much point explaining it to you further if you can't distinguish between civil and criminal law but yet are arrogant enough to use bold letters to highlight your stupidity.

thejourney

barneystinson wrote: »

I see where you used the word "law", but you'll have to point me to where you "stated the law"...

http://www.irishstatutebook.ie/eli/1956/act/2/enacted/en/print.html

barneystinson

thejourney wrote: »

Revenue most PROVE your guilty, you don't have to PROVE your not guilty.

Under Irish Law, No assumptions of guilt

You're just demonstrating your ignorance there.

Tax assessment and collection are civil matters, guilt or innocence aren't relevant in that context.

If Revenue raise a tax assessment it has force of law unless and until it is successfully appealed.

In law the general principle is that he who asserts must prove. When you appeal a tax assessment you are asserting it is wrong. You must prove that.

barneystinson

thejourney wrote: »

http://www.irishstatutebook.ie/eli/1956/act/2/enacted/en/print.html

Yes, and? What's the relevant bit, and / or how does it support your argument?

thejourney

barneystinson wrote: »

You're just demonstrating your ignorance there.

Tax assessment and collection are civil matters, guilt or innocence aren't relevant in that context.

If Revenue raise a tax assessment it has force of law unless and until it is successfully appealed.

In law the general principle is that he who asserts must prove. When you appeal a tax assessment you are asserting it is wrong. You must prove that.

and if you don't do anything what happens?

barneystinson

thejourney wrote: »

and if you don't do anything what happens?

The Office of the Collector General will come looking for their money. Attachment of bank accounts, Revenue sheriff seizing goods, judgement mortgage / forced sale of property, all sorts of interesting things...

thejourney

barneystinson wrote: »

The Office of the Collector General will come looking for their money. Attachment of bank accounts, Revenue sheriff seizing goods, judgement mortgage / forced sale of property, all sorts of interesting things...

Just goes to show. However when there is real crime they are hiding. Cowards in this country

barneystinson

thejourney wrote: »

Just goes to show. However when there is real crime they are hiding. Cowards in this country

Huh? The staff of the Collector General's office should be out fighting crime rather than, you know, GENERALLY COLLECTING taxes which is their actual job...?

thejourney

barneystinson wrote: »

Huh? The staff of the Collector General's office should be out fighting crime rather than, you know, GENERALLY COLLECTING taxes which is their actual job...?

I know but there should be some room to move. Like 3% either way as tax is too high on the rich.