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Purchasing house from parents

  • 31-01-2019 6:14pm
    #1
    himalayan_joe
    Registered Users, Registered Users 2 Posts: 8 ✭


    Hi all,

    I am planning on purchases my parent's house from them so they can downsize to a smaller house.

    The house was up for sale last year but didn't sell. I have offered approx. €75k less than the asking price (it was overpriced in my opinion) and my offer is more in line with other properties in the area.

    What would the tax implications of purchasing this property be? I will be buying it with my fiance.

    Appreciate your help,

    Joe


Comments

  • #2
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,888 ✭✭✭✭Calahonda52


    I will leave tax issues to others, just consider if the surplus cash your folks will have may impact either one of them that might in in receipt of A Non-Con State pension

    “I can’t pay my staff or mortgage with instagram likes”.



  • #3
    SCKGroup
    Registered Users, Registered Users 2 Posts: 3 ✭SCKGroup


    Sounds like you believe you will be paying market value for the house on the basis their asking price from last year was over valued.

    If the sale is at market value, then it is more straight forward from a tax perspective.. there will be no "deemed gift" for Capital Acquisitions Tax (CAT) purposes, therefore no CAT will be payable.

    Assuming the house is your parents principal private residence, and it has been for the entire duration of them owning the house, and they have not rented out the house at any point, then the sale of the house by your parents will be exempt for capital gains tax purposes (CGT).

    You will be liable for stamp duty at 1% on the purchase of the house.


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