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Tax implications of parents gifting family home

  • 24-07-2017 2:34pm
    #1
    roast222
    Registered Users, Registered Users 2 Posts: 55 ✭✭


    If I am being gifted the family home which is valued at approximately €500k, what are the tax implications for:

    1) Me
    2) My parents

    If I will not take up residence in it until after they pass away.


Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,036 ✭✭✭✭Geuze


    If you inherit it upon their death, obviously there are no tax implications for them.

    You may have a CAT liability, as 500k exceeds the current 310k CAT limits.

    http://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx


  • #3
    amtc
    Registered Users, Registered Users 2 Posts: 2,490 ✭✭✭amtc


    Something I've been looking at recently. I'm an only child, no children or close relatives. My dad 80 this year my mam 70. House in my mam's sole name.


  • #4
    roast222
    Registered Users, Registered Users 2 Posts: 55 ✭✭roast222


    Geuze wrote: »
    If you inherit it upon their death, obviously there are no tax implications for them.

    You may have a CAT liability, as 500k exceeds the current 310k CAT limits.

    http://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx

    Would there be any CGT implications for my parents?


  • #5
    august12
    Registered Users, Registered Users 2 Posts: 1,275 ✭✭✭august12


    If you inherited on their death, there are no tax implications whatsoever for them, there maybe for you depending what the inheritance threshold is at time of inheritance, it is currently at over 300,000 parent to child I think. Today, that would mean you could possibly be paying tax on 200,000@ 33%, that would be approx. 66,000. There is an annual exemption of 1250 approx. and your legal fees, auctioneer/valuation fees can be deducted.

    Just re read your thread, if they gift to you while still living, then they may not have a cgt liability as this is their principal private residence. I presume they are living in this house. Tax advise would be best in this situation, I think.


  • #6
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,629 ✭✭✭✭Marcusm


    roast222 wrote: »
    If I am being gifted the family home which is valued at approximately €500k, what are the tax implications for:

    1) Me
    2) My parents

    If I will not take up residence in it until after they pass away.


    Do you mean that they are gifting it to you but retaining a right of residence? You and they should seek tax advice.


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