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Gift Tax and my Wife

  • 11-12-2017 10:22pm
    #1
    indy_man
    Registered Users, Registered Users 2 Posts: 377 ✭✭


    Hi,


    If I receive a gift from my parents say property at a value of 120K, I know I am exempt based on my exemption lifetime threshold. But since my wife is not a blood relation will she have to pay CAT, on the remainder above her threshold of 16K. If I inherit the property and not my wife will she not need to pay the CAT and only my threshold will be reduced.


    Indy


Comments

  • #2
    Cloudio9
    Registered Users, Registered Users 2 Posts: 1,351 ✭✭✭Cloudio9


    indy_man wrote: »
    Hi,


    If I receive a gift from my parents say property at a value of 120K, I know I am exempt based on my exemption lifetime threshold. But since my wife is not a blood relation will she have to pay CAT, on the remainder above her threshold of 16K. If I inherit the property and not my wife will she not need to pay the CAT and only my threshold will be reduced.


    Indy

    No because your wife is not receiving the gift.


  • #3
    VonBeanie
    Registered Users, Registered Users 2 Posts: 101 ✭✭VonBeanie


    indy_man wrote: »
    Hi,


    If I receive a gift from my parents say property at a value of 120K, I know I am exempt based on my exemption lifetime threshold. But since my wife is not a blood relation will she have to pay CAT, on the remainder above her threshold of 16K. If I inherit the property and not my wife will she not need to pay the CAT and only my threshold will be reduced.


    Indy

    If you receive the inheritance in the first instance, then the only CAT issue relates to you and your exemption limit means you have no CAT liability. Once the asset is yours, you can transfer all or any part of it to your wife and there is no CAT issue, as transfers between spouses are exempt from CAT.


  • #4
    C3PO
    Registered Users, Registered Users 2 Posts: 3,795 ✭✭✭C3PO


    Even if the inherited property becomes their "family home"?


  • #5
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    C3PO wrote: »
    Even if the inherited property becomes their "family home"?

    Whether it does or not is irrelevant. If you receive the gift and it's below your threshold then there's no CAT payable. If you want to transfer half of the house into your wife's name, you should do so after (I think) 3 years and there will be no CAT on that either.

    As in all cases, don't rely on advice received here....consult a professional.


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