buy house from siblings . what can I expect tax wise.

timetunnel

thinking of buying home from siblings .
my mother died 4 years ago .
so house will be going on the market soon .
my circumstance have changed .
now divorced .
family maybe willing to let me buy at knocked down price .
they are valued around the area for around 350000,
they might be willing to let me have for about 250000.
what are the possible loop holes I could be caught with .
tax etc .
the house will need a lot of work .
so I'm hoping they might give it to me a good price .
regards
timetunnel

timetunnel

probate was completed a couple of months back .

Penguin3029

timetunnel wrote: »

thinking of buying home from siblings .
my mother died 4 years ago .
so house will be going on the market soon .
my circumstance have changed .
now divorced .
family maybe willing to let me buy at knocked down price .
they are valued around the area for around 350000,
they might be willing to let me have for about 250000.
what are the possible loop holes I could be caught with .
tax etc .
the house will need a lot of work .
so I'm hoping they might give it to me a good price .
regards
timetunnel

Looking purely at the tax implications from your point of view, and not your siblings.

Stamp duty will be charged on the higher of what you pay or market value. So using your figures, 1% duty payable on the €350,000 (assuming this is the market value, you note it needs work so maybe it's actually less?)

Because it's a sale undervalue (again assuming €350,000 market value) there's a gift element. Suppose they sell for €250,000 you will be deemed to receive a gift of €100,000. Tax payable will depend on whether you've received gifts from other family members in the past.

timetunnel

was just talking to my brother .
he is contacting the solicitor to find out valuation .
but he says he thinks it was 300000.
the total sum of money I can afford is 250000 euro .
this money will be for my 7 other siblings .
I have never received any other gifts for tax .
this would have being my first .
my brother was saying I might be hit for gift tax .
I know I'll have to pay stamp duty on the 300000.
what type of gift tax would I expect to pay .
there should be no capital gain tax .
has the house will be sold under the 300000

Penguin3029

The gift tax will depend on a few things. Who owns the property, i.e. who was it left to in the will? You and your 7 siblings equally?

Mr. Incognito

Speak to a solicitor