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Second property to be occupied by a relative

  • 30-10-2018 9:43am
    #1
    Diemos
    Registered Users, Registered Users 2 Posts: 1,417 ✭✭✭


    I have a second property, due to be vacated in the next few weeks.
    A relative of mine is looking for a new rental property while they save with their partner for a place of their own.

    I'm thinking of offering my place to them rent free.
    The property is not in an rpz.
    Are there any tax implications of such an arrangement?


Comments

  • #2
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    Potentially, you are giving them a gift and CAT may apply. With no income, will you be able to write off your expenses?

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/index.aspx


  • #3
    Diemos
    Registered Users, Registered Users 2 Posts: 1,417 ✭✭✭Diemos


    Victor wrote: »
    Potentially, you are giving them a gift and CAT may apply. With no income, will you be able to write off your expenses?

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/index.aspx

    There are no expenses, other than white goods.
    I don't see the 12 to 18 month period costing me much if anything.


  • #4
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,633 ✭✭✭✭Marcusm


    Diemos wrote: »
    There are no expenses, other than white goods.
    I don't see the 12 to 18 month period costing me much if anything.

    Enter into a caretaker agreement rather than a lease.


  • #5
    ross2010
    Registered Users, Registered Users 2 Posts: 67 ✭✭ross2010


    Even with a caretaker agreement in place they are potentially exposed officially for gift tax as they are receiving the benefit of living there (our accountant told us this approx 7 years ago but don't think it has changed). You would not be exposed for tax provided you are not receiving any financial gain. If the relative is a dependant (child) you can gift them without any tax burden an amount of 1k per month and so could write off the rental against that.


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