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Inheritance tax burden reduction

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    #32
    coylemj
    Registered Users Posts: 25,363 ✭✭✭✭coylemj


    Edgware wrote: »
    People dont mind if it helps genuine cases but when it goes to spongers like Ms Cash you cant blame them from not wanting to pay

    Pointing at specific waste or instances where public money is spent on people who don't deserve it is a pretty weak excuse for 'not wanting to pay'.

    It's simply a cover story for 'I dont want to pay any tax'


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    #33
    Edgware
    Registered Users Posts: 5,875 ✭✭✭Edgware


    coylemj wrote: »
    Pointing at specific waste or instances where public money is spent on people who don't deserve it is a pretty weak excuse for 'not wanting to pay'.

    It's simply a cover story for 'I dont want to pay any tax'

    Rubbish. If we got the services promised for our high taxes we wouldn't mind paying but when it goes to leeches of course we don't want to pay


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    #34
    Sleeper12
    Registered Users Posts: 16,956 ✭✭✭✭Sleeper12


    Edgware wrote:
    Inheritance tax is a very big issue with politicians at the moment as their constituents are being hammered. The value of property and smaller families means that the thresholds are easily reached and then you are hit with a 33% rate. There may be an increase in thresholds in the Budget next month but inheritance tax is a nice little earner for the taxman

    I can't see any big change in inheritance from aunt tbh. Any sizeable change I'd imagine being parent to child.

    I'm wondering if op moved into his aunts house and lived there for a number of years would it be possible considered the family home in the same way as living in the parents house for a number of years makes it the family home as far as inheritance tax is concerned?


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    #35
    splinter65
    Registered Users Posts: 9,420 ✭✭✭splinter65


    Edgware wrote: »
    People dont mind if it helps genuine cases but when it goes to spongers like Ms Cash you cant blame them from not wanting to pay

    Irish people want great housing/schools/hospital/roads/Gardai etc but they don’t want to pay any tax.
    If you ask the moaners who they think should pay for these things they nominate Denis o’Brien And Michael O’Leary and Ben Dunne and of course Apple.
    The SW budget alone is 22 billion but they somehow go deaf when you say this.
    There are spongers and freeloaders in every society. If you try to avoid financially contributing to the country then that makes you as bad as them.


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    #36
    august12
    Registered Users Posts: 1,275 ✭✭✭august12


    I totally agree, there is so much money wasted in this country, we are told over and over again how tight budgets are but it amazes me how money miraculously appears for elections/referendums/state visits, think in in Farmleigh estate, etc. There is no shortage of money in this country for some people but when vulnerable people in society look for help, the same old crap recording is played over and over, no money for these deserving people, and I'm referring to special needs, disabled and carers when I mention the vulnerable and not the leeches who are out sucking every penny they can possibly get with no intention of ever giving back anything to society. And I won't start on the waste in the Public Sector and I speak from experience here as I witness it first hand.

    PS I don't blame anyone who is trying to limit paying inheritance tax to our Government, you can be damn sure about 99% of it is wasted between consultants, advisers, Public servants travel expenses etc, there isn't much left for services.


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    #37
    splinter65
    Registered Users Posts: 9,420 ✭✭✭splinter65


    Sleeper12 wrote: »
    I can't see any big change in inheritance from aunt tbh. Any sizeable change I'd imagine being parent to child.

    I'm wondering if op moved into his aunts house and lived there for a number of years would it be possible considered the family home in the same way as living in the parents house for a number of years makes it the family home as far as inheritance tax is concerned?

    There’s no mention of “the family home” in inheritance tax law. It doesn’t matter who is living in the “family home” or how long you’ve been living there.
    If it’s willed to you and your not a child of the dead person then you’ll have a cap of either €32500 or €16500 and pay 33c on the € on any amount over that.


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    #38
    Sleeper12
    Registered Users Posts: 16,956 ✭✭✭✭Sleeper12


    splinter65 wrote:
    There’s no mention of “the family home†in inheritance tax law. It doesn’t matter who is living in the “family home†or how long you’ve been living there. If it’s willed to you and your not a child of the dead person then you’ll have a cap of either €32500 or €16500 and pay 33c on the € on any amount over that.


    If you are an adult living with your parents and you inherit the family home then Dwelling House Relief comes into play you are not hit by inheritance tax so long as you don't own a home yourself. I was wondering if living with an elderly aunt would qualify you for the Dwelling House Relief or does it have to be a parent?

    EDIT: https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx


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    #39
    Spanish Eyes
    Registered Users Posts: 15,913 ✭✭✭✭Spanish Eyes


    Farmers and business people can leave their millions to anyone with a 90%reductiion in the capital value of same (provided the beneficiiary qualifies) for inheritance (and gift) tax purposes.

    I understand the reasoning behind it, to keep farms and businesses going.

    But woe betide you if you inherit a house and don’t qualify for dwelling house exemption.

    Take note!


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    #40
    hullaballoo
    Administrators, Entertainment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 18,718 Admin ✭✭✭✭✭hullaballoo


    splinter65 wrote: »
    There’s no mention of “the family home” in inheritance tax law. It doesn’t matter who is living in the “family home” or how long you’ve been living there.
    If it’s willed to you and your not a child of the dead person then you’ll have a cap of either €32500 or €16500 and pay 33c on the € on any amount over that.

    That's not true: http://www.irishstatutebook.ie/eli/2003/act/1/section/86/enacted/en/html

    Notwithstanding the above, I don't think the OP will be able to rely on a s. 86 exemption either way.

    CAT is a horrible, unfair tax but because it only has an effect on people regarded as well off, the populist agenda favours keeping it in place and in particular to ensure people from wealthy backgrounds lose their shirts if they want to keep the home they grew up in.


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    #41
    Spanish Eyes
    Registered Users Posts: 15,913 ✭✭✭✭Spanish Eyes


    The only reason I think CAT is unfair is if you are the beneficiary of a farmer or a private business you can avail of AG or Business Relief.

    That does not apply to a family home unless you have lived there for the required number of years and do not own any other home.


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    #42
    banie01
    Registered Users Posts: 16,573 ✭✭✭✭banie01


    hullaballoo wrote: »
    That's not true: http://www.irishstatutebook.ie/eli/2003/act/1/section/86/enacted/en/html

    Notwithstanding the above, I don't think the OP will be able to rely on a s. 86 exemption either way.

    CAT is a horrible, unfair tax but because it only has an effect on people regarded as well off, the populist agenda favours keeping it in place and in particular to ensure people from wealthy backgrounds lose their shirts if they want to keep the home they grew up in.


    From painful experience an s.86 exemption is exceedingly difficult to get Revenue's agreement to.


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    #43
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    splinter65 wrote: »
    Irish people want great housing/schools/hospital/roads/Gardai etc but they don’t want to pay any tax.
    ..... If you try to avoid financially contributing to the country then that makes you as bad as them.

    People pay tax all their lives, they the end of their lives, they end up spending days on a trolley in ER when they are sick. They pay health insurance all their lives. They go into a nursing home, and its as if you never paid a cent. So you pay 22% of the value or your house, or 2k+ a week as if you never paid tax a day in your life. Then if you want leave you kids something, again its like you never paid tax and you pay yet again, to give your money to your kids.

    Then someone comes along and tell you after a lifetime of working you've not contributed to the country.

    If there's an incentive to pay inheritance tax I'm not seeing it.


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    #44
    Sleeper12
    Registered Users Posts: 16,956 ✭✭✭✭Sleeper12


    banie01 wrote:
    From painful experience an s.86 exemption is exceedingly difficult to get Revenue's agreement to.


    It's much easier since the 2016 ammendments. It's very straightforward now and I'm pretty sure since 2016 it doesn't even have to be a parent. It has to be your main residence for six years after you inherit it though


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    #45
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    If you did want to move back into your family home after its left to you. You'd pay tax both on inheriting, or buying the family home and selling the home you live in currently.

    How someone can say you don't pay tax or enough tax baffles me.


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    #46
    august12
    Registered Users Posts: 1,275 ✭✭✭august12


    beauf wrote:
    If you did want to move back into your family home after its left to you. You'd pay tax both on inheriting, or buying the family home and selling the home you live in currently.

    There is no GCT on sale of your principle private residence as long as the conditions are met i.e. living there for x amount of years prior to sale.


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    #47
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    People better to inherit to schedule so...


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    #48
    RayCun
    Registered Users Posts: 15,704 ✭✭✭✭RayCun


    hullaballoo wrote: »
    That's not true: http://www.irishstatutebook.ie/eli/2003/act/1/section/86/enacted/en/html

    Notwithstanding the above, I don't think the OP will be able to rely on a s. 86 exemption either way.

    CAT is a horrible, unfair tax but because it only has an effect on people regarded as well off, the populist agenda favours keeping it in place and in particular to ensure people from wealthy backgrounds lose their shirts if they want to keep the home they grew up in.

    Suppose I was an only child from a wealthy background.
    My parents die and leave me the home I grew up in, which is worth a million euro.
    I now have a choice between selling the house and walking away with over half a million euro I didn't lift a finger to earn, or taking out a mortgage to pay for a house that is worth much, more than I have to borrow to pay for it.


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