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Gift tax

  • 28-07-2018 10:48am
    #1
    digzy
    Registered Users, Registered Users 2 Posts: 3,049 ✭✭✭


    Can a grandparent give a 3k gift to a grandchild which the parent subsequently uses to say, pay a mortgage or towards a car. The grandparent would've already given 3k to the parent.


Comments

  • #2
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,113 ✭✭✭relax carry on


    digzy wrote: »
    Can a grandparent give a 3k gift to a grandchild which the parent subsequently uses to say, pay a mortgage or towards a car. The grandparent would've already given 3k to the parent.

    Assuming your talking about the 3k annual limit, I think the second 3k would be caught by gift splitting and would effect the parents CAT threshold.

    https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/how-do-you-calculate-cat.aspx


  • #3
    scheister
    Registered Users, Registered Users 2 Posts: 1,310 ✭✭✭scheister


    digzy wrote: »
    Can a grandparent give a 3k gift to a grandchild which the parent subsequently uses to say, pay a mortgage or towards a car. The grandparent would've already given 3k to the parent.

    Think i have this right

    Person A gives 2x 3k gifts
    One to their child Person B
    One to their grandchild Person C

    Person B uses the full 6k to pay off part of a car loan. As the person above said gift spitting may be an issue.

    Does person B still have the full Class A threshold if so give them the full 6 directly the extra 3k will not put any dent in the threshold. Alternative is person A or B married if so can the spouse of Person A gift the money or can the spouse of person b take a gift


  • #4
    Peregrinus
    Registered Users, Registered Users 2 Posts: 26,989 ✭✭✭✭Peregrinus


    scheister wrote: »
    Think i have this right

    Person A gives 2x 3k gifts
    One to their child Person B
    One to their grandchild Person C

    Person B uses the full 6k to pay off part of a car loan. As the person above said gift spitting may be an issue.

    Does person B still have the full Class A threshold if so give them the full 6 directly the extra 3k will not put any dent in the threshold. Alternative is person A or B married if so can the spouse of Person A gift the money or can the spouse of person b take a gift
    There's a bigger problem. Person B is guilty of theft.


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