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Purchasing house from Parent

  • 17-01-2019 10:08am
    #1
    oopsies
    Registered Users, Registered Users 2 Posts: 89 ✭✭


    Hi there,

    Apologies if this has been asked before.

    My partner and myself are looking to buy our house which we currently live in from his mother. She doesn't live with us, she has her own house closeby.
    So the agreement is we buy the house for 50K. I still have to get the house valued but I'd say its in the region of 300K at the moment as it has 3 acres of land attached. The house needs renovation so we will hopefully get a loan for 80K or as close as we can to it.

    So my question is what are the tax implications for this? Can we even buy the house for under the market value? Our combined salary is about 47K as my partner works part time as we have a young son. We also have practically no savings... maybe 5K at a stretch!

    Any insights or advice would be welcome!


Comments

  • #2
    JustMe,K
    Registered Users, Registered Users 2 Posts: 610 ✭✭✭JustMe,K


    Pretty sure the difference between the price paid and the market value will be classed as part of his inheritance.

    Its a really lovely position for your family to be in, and for his mother to be able to see her son & family enjoy the inheritance while shes still alive!


  • #3
    BrokenArrows
    Registered Users, Registered Users 2 Posts: 7,501 ✭✭✭BrokenArrows


    I would get legal and tax advice regarding this.

    If its your parents second property and they "sell" it to you then they will be liable for capital gains tax on the market value as far as im aware.

    You need to get advice to find out the most tax efficient way of doing this.

    The most tax effecient way if probably for them to gift the whole property to you and then you "gift" them 50k. Not sure of the legality of this.


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