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Gift tax help!

  • 27-11-2017 2:53pm
    #1
    a-non
    Registered Users, Registered Users 2 Posts: 47 ✭


    If I were to use a gift I received from my mother of a substantial sum from the proceeds of the sale of a property, towards the purchase of a house which would be in my & my wife's name then could there be a tax liability as the house would be in our joint name? (I have read a rule about re-gifting within 3 years)


Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,042 ✭✭✭✭Geuze


    I presume here that the gift from mother to child was CAT-free?


    The subsequent use of that money to purchase a house for a married couple is also free of CAT.

    A spouse can gift as much as they like to another spouse, no CAT.


  • #3
    a-non
    Registered Users, Registered Users 2 Posts: 47 ✭a-non


    Thanks for the quick reply..

    Just very confused by this site:
    http://www.knowyourtax.ie/gift-inheritance-tax/

    If you gift an asset/cash etc to an individual and within 3 years they gift that asset to another individual, the last beneficiary is deemed to receive that gift from the original disponer. E.G. A parent gifts €200,000 cash to their son (nil liability as gift is within the Class A threshold). Within 3 years he gifts €50,000 to his wife. This €50,000 gift is not an exempt gift between spouses, the wife is instead deemed to receive the €50,000 from her in-laws and only has the stranger threshold and small gift exemption to offset before paying gift tax @ 33% on the balance.


  • #4
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    a-non wrote: »
    Thanks for the quick reply..

    Just very confused by this site:
    http://www.knowyourtax.ie/gift-inheritance-tax/

    If you gift an asset/cash etc to an individual and within 3 years they gift that asset to another individual, the last beneficiary is deemed to receive that gift from the original disponer. E.G. A parent gifts €200,000 cash to their son (nil liability as gift is within the Class A threshold). Within 3 years he gifts €50,000 to his wife. This €50,000 gift is not an exempt gift between spouses, the wife is instead deemed to receive the €50,000 from her in-laws and only has the stranger threshold and small gift exemption to offset before paying gift tax @ 33% on the balance.

    If the son gives half the money to his spouse then it would be deemed to have come from the mother. Buy the house and then transfer the share after 3 years.


  • #5
    a-non
    Registered Users, Registered Users 2 Posts: 47 ✭a-non


    Lockedout2 wrote: »
    If the son gives half the money to his spouse then it would be deemed to have come from the mother. Buy the house and then transfer the share after 3 years.

    So if we are giving the money direct to the seller of the property that we are buying we are not liable to tax?


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