Gift tax for money recieved when purchasing a house.

Paul_Mc1988

Hi guys looking for some help here.

Recently went sale agreed on a house and received a gift from her parents of 9000 euro for solicitor fees and stamp duty. As far as I knew 3000 fell under the small gift tax and the other 6000 came off her lifetime entitlement of 310,000 tax free leaving her with 304,000 left. Can anyone confirm this as her fathers accountant is saying otherwise?.

Mooooo

Paul_Mc1988 wrote: »

Hi guys looking for some help here.

Recently went sale agreed on a house and received a gift from her parents of 9000 euro for solicitor fees and stamp duty. As far as I knew 3000 fell under the small gift tax and the other 6000 came off her lifetime entitlement of 310,000 tax free leaving her with 304,000 left. Can anyone confirm this as her fathers accountant is saying otherwise?.

Once the gift went to her and not the both of ye. If it went to the both of ye or a joint account the 50% for you would be taxable after the gift tax limit. If it all went to her I'm not sure if it all just comes off her lifetime figure, as opposed to any of it being in the gift threshold. Not an accountant so well open to correctiom

Paul_Mc1988

Mooooo wrote: »

Once the gift went to her and not the both of ye. If it went to the both of ye or a joint account the 50% for you would be taxable after the gift tax limit. If it all went to her I'm not sure if it all just comes off her lifetime figure, as opposed to any of it being in the gift threshold. Not an accountant so well open to correctiom

Thanks moo.

The money went into her account. I had my half of the deposit, stamp duty and solicitors fees. She was the one short so for arguments sake let's say its 100% from her parents to her. Really hoping to get a definitive answer here as I cant wake up to any more texts after night shifts to this....

Calahonda52

Paul_Mc1988 wrote: »

Thanks moo.

The money went into her account. I had my half of the deposit, stamp duty and solicitors fees. She was the one short so for arguments sake let's say its 100% from her parents to her. Really hoping to get a definitive answer here as I cant wake up to any more texts after night shifts to this....

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If there is head room in the bank account, send back the 9, and then let her get 3 from her Ma, 3 from her Paw and then you get 3 from either Parent.

Paul_Mc1988

Calahonda52 wrote: »

.
If there is head room in the bank account, send back the 9, and then let her get 3 from her Ma, 3 from her Paw and then you get 3 from either Parent.

Theres no head room in the bank + it will complicate the gift letter situation etc. The better question is do i actually need it. Can anyone confirm if there is a tax liability owed?

Calahonda52

Paul_Mc1988 wrote: »

Theres no head room in the bank + it will complicate the gift letter situation etc. The better question is do i actually need it. Can anyone confirm if there is a tax liability owed?

Re do the letter, the accountant may be influenced by the letter

Mooooo

I don't see how there can be a liability when transferring that amount from parent to child.

thegolfer

There is no tax liability arising on what you have described above.

The suggestion to split the monies works in your favor, and wife's favor, as splitting the gift will not eat into her 310000 lifetime gift.

Redraft the letter, noting the 9000 is for fees etc, and that it is split between the two of you.

As noted you can receive multiple gifts of 3000 in a year.

No need to transfer in and out of the bank account so long as it has been recorded, and acknowledged.

Paul_Mc1988

Paul_Mc1988 wrote: »

Hi guys looking for some help here.

Recently went sale agreed on a house and received a gift from her parents of 9000 euro for solicitor fees and stamp duty. As far as I knew 3000 fell under the small gift tax and the other 6000 came off her lifetime entitlement of 310,000 tax free leaving her with 304,000 left. Can anyone confirm this as her fathers accountant is saying otherwise?.

I’d love to know what your accountant is saying as if he thinks a gift from parents to a child doesn’t come out of the group A threashold (after the 3k small gifts exemption) they need a new account at.

There is absolutely no tax liability in this instance nor does a tax return even need to be made.

Mooooo wrote: »

Once the gift went to her and not the both of ye. If it went to the both of ye or a joint account the 50% for you would be taxable after the gift tax limit. If it all went to her I'm not sure if it all just comes off her lifetime figure, as opposed to any of it being in the gift threshold. Not an accountant so well open to correctiom

The parents gifting it to both would have been the most tax efficient in this case as her parents can give their daughter 6k per year tax free and the op 6k per year tax free under the small gifts exemption. If it’s over the small gift exemption then there would be the group C threashold for the op before tax would be due though this is a small threashold.

Paul_Mc1988

Thanks everyone for the help. It was much appreciated. I will forward the information to the other half so she can calm her father down. He must constantly think revenue are listening to his calls