max gift for first time buyer for a parent, aunt , sister, etc

mkdon

Hi all might be a silly question but what is the max gift one can receive from a parent , aunt, brother etc.... that is tax free and surpassing that amount

i am reading mixed reports so can anyone shed any light would be grateful so as not to get caught out by taxman...

kippy

mkdon wrote: »

Hi all might be a silly question but what is the max gift one can receive from a parent , aunt, brother etc.... that is tax free and surpassing that amount

i am reading mixed reports so can anyone shed any light would be grateful so as not to get caught out by taxman...

You will find the specifics here:
https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/how-do-you-calculate-cat.aspx

mkdon

kippy wrote: »

You will find the specifics here:
https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/how-do-you-calculate-cat.aspx

cannot see the specifics in the link you sent ....

Sleeper12

mkdon wrote:

cannot see the specifics in the link you sent ....

You can receive 3k from each person tax free per year. If you have a spouse or partner they can receive 3k from each of them tax free per year too.

There is threshold of something like 360,000 tax free in your lifetime from your parents.

Get Real

As said above, 3k per year. Unless it's your parents, they can gift you 360k tax free. This could be all at once (but you'd have tax implications then with a will etc).

Say you needed 21k. Your aunt could give you 3k, uncle 3k, other aunt 3k etc etc. 7 separate people could gift you 3k and there'd be no tax to pay on the 21k. You'd need a declaration off each of them though.

kippy

mkdon wrote: »

cannot see the specifics in the link you sent ....

I am sorry for your troubles.

mkdon

Get Real wrote: »

As said above, 3k per year. Unless it's your parents, they can gift you 360k tax free. This could be all at once (but you'd have tax implications then with a will etc).

Say you needed 21k. Your aunt could give you 3k, uncle 3k, other aunt 3k etc etc. 7 separate people could gift you 3k and there'd be no tax to pay on the 21k. You'd need a declaration off each of them though.

thanks for the specifics guys .. clear as day now

kollegeknight

mkdon wrote: »

Hi all might be a silly question but what is the max gift one can receive from a parent , aunt, brother etc.... that is tax free and surpassing that amount

i am reading mixed reports so can anyone shed any light would be grateful so as not to get caught out by taxman...

How much are you talking about?
You can receive around 320,000 from your parent but you’ve to register it with revenue and it can’t be gifted to the both of you. Your partner is a stranger to your parents so the limit is around 30,000 I think.

scheister

kollegeknight wrote: »

How much are you talking about?
You can receive around 320,000 from your parent but you’ve to register it with revenue and it can’t be gifted to the both of you. Your partner is a stranger to your parents so the limit is around 30,000 I think.

Stranger is a lower limit 18750 off top of my head. so be careful how house is divided if you are getting a large gift from one person. There is tax appeal commissioner case around this. to sum it up if you parents give an 80k gift. Say it is split 65 to you and 15 to your spouse to avoid this. the house ownership must reflect this. If house is showing as 50/50 Revenue may claim gift was intended to be 50/50.

Brego888

How would revenue actually know that money has been exchanged between family members?

Peregrinus

Brego888 wrote: »

How would revenue actually know that money has been exchanged between family members?

From the Form IT38 which the recipient would download from the Revenue site, complete and return to the Revenue.

It's a self-assessment tax which, to my lasting regret, doesn't mean you can choose whether to assess yourself but that you are legally obliged to assess yourself, and exposed to fairly swingeing interest and penalties if you don't.

Brego888

But why do any of that? If your sister for example transfered 20 grand into your bank account over a couple of weeks who's to know?

c6ysaphjvqw41k

Peregrinus wrote: »

From the Form IT38 which the recipient would download from the Revenue site, complete and return to the Revenue.

It's a self-assessment tax which, to my lasting regret, doesn't mean you can choose whether to assess yourself but that you are legally obliged to assess yourself, and exposed to fairly swingeing interest and penalties if you don't.

But you only have to do it if you reach 80% of the threshold I thought? So couldn't your parents gift you 150,000 and that's not 80% of the threshold. So you don't have to file till you reach 80%. Or do I understand it incorrectly.

Peregrinus

Brego888 wrote: »

But why do any of that?

(a) Because you are honest, law-abiding and not a tax cheat.

Or

(b) Because you fear detection at some point. There's a couple of issues here.

First, when you buy the house, the Revenue are going to know that you bought it, and what you paid for it. (Stamp duty.) They already know what you earn, obviously. They might take an interest in how you financed it the purchase, if the two figures seem hard to reconcile. It's one thing not to mention something, or to put off mentioning it. It's another to lie outright when asked. Are you willing to do that?

Secondly, someday you're going to receive a gift or inheritance that can't be concealed, and you'll have to make a CAT return. In that return you'll be asked to detail all the gifts and inheritances (in excess of €3,000) you have received since 1991. Are you going to lie?

And, of course, even if you are willing to lie, if the Revenue find your lies unpersuasive, they can audit you, and the have power to inspect accounts and records for that purpose.

Geuze

mkdon wrote: »

cannot see the specifics in the link you sent ....

Yes, the thresholds are there, if you search:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-thresholds-post-november-2011.aspx

Mint Sauce

Brego888 wrote: »

But why do any of that? If your sister for example transfered 20 grand into your bank account over a couple of weeks who's to know?

Because when you apply for a Mortgage, the bank looks at your accounts with them, and asks where did you get the money from. Also if a family member gifts you money towards a house buy/deposit, they also require notice that said family member will have no finanical interest in the property.

kippy

Brego888 wrote: »

But why do any of that? If your sister for example transfered 20 grand into your bank account over a couple of weeks who's to know?

I think it's important to say that:
1. The bank would know and there would be a paper trail there for anyone with the correct legal authority to see down the line.
2. Specifically when purchasing a house, the bank themselves want to know where all funds are coming from, specifically large cash deposits into your account(s). They will ask you outright whether they are gifts or where you got the money from. These are legal declarations.

Peregrinus

Heath Yummy Plow wrote: »

But you only have to do it if you reach 80% of the threshold I thought? So couldn't your parents gift you 150,000 and that's not 80% of the threshold. So you don't have to file till you reach 80%. Or do I understand it incorrectly.

Yes, that's correct. I'm more addressing a situation in which a taxpayer does have a CAT liablity but contemplates evading it by simply omitting to make a return.

scheister

Peregrinus wrote: »

Yes, that's correct. I'm more addressing a situation in which a taxpayer does have a CAT liablity but contemplates evading it by simply omitting to make a return.

Revenue have others systems in place to help get the information. They have been known to compare internal data and see if it makes sense. if not they will ask questions. My own parents got a letter when they bought their home asking where the money for the stamp duty came from.

4ensic15

The banks have money laundering obligations and must enquire where large amounts of money come from and report anything suspicious to the Revenue. There is every chance the banks would report the gift to the Revenue. The only way I have heard of concealing gifts is for the relatives to pay for furniture and applicances and maybe some decorating or gardening work after the purchase.