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Moving Home

  • 10-04-2017 9:42am
    #1
    slig17
    Users Awaiting Email Confirmation Posts: 67 ✭✭


    Hi,

    Moving to a home left to me in a will. I have a mortgage on my other house and received trs and on a tracker? any advice. Considering leaving the house unoccupied because i dont want to lose the tracker. Help please? clueless.


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    If you're permanently moving to the new place, the old home will no longer be your principal private residence so in theory you won't be entitled to tax relief on the mortgage payments. The tracker question depends on the Ts & Cs attached to the loan.

    From a financial perspective, you might be better off staying where you are and renting out the place you were left in the will though I realise that it's probably the family home and you'd now prefer to live there rather than put a bunch of strangers in it.


  • #3
    slig17
    Users Awaiting Email Confirmation Posts: 67 ✭✭slig17


    coylemj wrote: »
    If you're permanently moving to the new place, the old home will no longer be your principal private residence so in theory you won't be entitled to tax relief on the mortgage payments. The tracker question depends on the Ts & Cs attached to the loan.

    From a financial perspective, you might be better off staying where you are and renting out the place you were left in the will though I realise that it's probably the family home and you'd now prefer to live there rather than put a bunch of strangers in it.

    How would it be know its not my principal residence if i don't rent it out?


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    slig17 wrote: »
    How would it be know its not my principal residence if i don't rent it out?

    Because you're planning to permanently move into a different house.

    You can't claim that a house is a 'residence' if nobody lives there :rolleyes:


  • #5
    slig17
    Users Awaiting Email Confirmation Posts: 67 ✭✭slig17


    coylemj wrote: »
    Because you're planning to permanently move into a different house.

    You can't claim that a house is a 'residence' if nobody lives there :rolleyes:

    Well it will be still full of furniture and stuff and we will be in at least once a week to keep an eye on it. will this do no?


  • #6
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    slig17 wrote: »
    Well it will be still full of furniture and stuff and we will be in at least once a week to keep an eye on it. will this do no?

    Whatever.

    But thinking this further...... the taxman knows that you inherited a house, he also knows that you didn't sell it and that you are continuing to get TRS on the mortgage on your 'principal private residence'. So what do you say when he asks you why you're not declaring tax on the rental income that you are surely getting on the house you inherited?

    Edit: there is another issue that you may not have factored into your decision, that of potential liability to Capital Gains Tax (CGT) on the sale of one of those houses.

    You are exempt from paying CGT on a capital gain on the sale of your principal private residence. If the house you inherited is a bigger house and/or is in a better area and likely to appreciate in value more than the house you currently live in, you should consider designating the inherited house as your principal private residence in order to avoid paying CGT should you sell it down the line.

    If you keep the current house where you currently live as your principal private residence and later sell the inherited house, you will be liable for CGT of 33% of the amount by which it has appreciated - that will be the sale price minus the value put on it for probate. Which could be very painful if you managed to persuade an estate agent to give you a 'conservative' ;) valuation on the house for probate.


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  • #7
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,957 Admin ✭✭✭✭✭Toots


    Mod note:

    Please note that asking for advice on things that are legally questionable is not permitted
    No Dishonest Dealings.
    Don't ask how to get around repaying debts/defaulting/giving false information for loans etc - basically if it's not above board, and legal, it's not allowed. This includes advising posters to do it/how to do it.

    Please read the charter for more info.

    OP if you are claiming TRS then you need to advise the bank and revenue that the dwelling is no longer main residence. "Popping in" once or twice a week to check on the place does not count as residing there.


  • #8
    slig17
    Users Awaiting Email Confirmation Posts: 67 ✭✭slig17


    Toots wrote: »
    Mod note:

    Please note that asking for advice on things that are legally questionable is not permitted



    Please read the charter for more info.

    OP if you are claiming TRS then you need to advise the bank and revenue that the dwelling is no longer main residence. "Popping in" once or twice a week to check on the place does not count as residing there.

    Thanks its all new to me so with advice from other avenues decided to stay put and leave my old home house for the moment as its way too messy thanks all


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