Family home

1963timetunnel

Hi
I bought my mother's house in 2018.
I paid full market price .
My mother died in 2018.
So the house was left to the family of 8 .
The family had agreed to sell to me .
But with all families.
There is always one .
And she refused and made the family put it on the open market.
So I had to buy the house through the estate agent .
Which cost the family .
As we had to pay for legal fees and estate agent fees .
We ended up paying over €40,000 in capital gains tax .
Between the 8 of us .
What I'm asking can I claim my tax back .
As it was the family home and I was buying it and moving into it.
The house was valued at €240,000 in or around 2013 when my mother died.
When I bought it in 2018.
I paid €370,000
So we paid the 40,000 tax on the difference between the 240,000 and the 370,000.
Can I claim back the tax I paid .
1963timetunnel

thegolfer

So sorry to hear your mam passed away.

Regarding the above, no is the short answer.

When she died, her assets passed to her estate.

Representatives were required to realise the assets and deal with her affairs. When the home house passed to the estate the date of death created a new ownership, to the estate. The tax issues to the date of death evaporated.

CGT is payable on the uplift in value between date of death and date of disposal, this this is where the 40000 arises, but it's a liability of the estate, not you, and payable out of the estate.

Putting it on the market and estate agent was unnecessary, a valuation could have been obtained to establish selling price.

The CGT cannot be claimed back.

tanit

Am I right in saying that the reason for the CGT tax on the sale of the house was caused due to the valuation of the house at the time of death was lower than the valuation when the house was sold?
If so why was the original valuation so far off the market value?

Thank you

thegolfer

tanit wrote: »

Am I right in saying that the reason for the CGT tax on the sale of the house was caused due to the valuation of the house at the time of death was lower than the valuation when the house was sold?
If so why was the original valuation so far off the market value?

Thank you

She passed away in 2013, 5 years earlier, but the uplift in the value was in the estate, and subject to cgt.

tanit

thegolfer wrote: »

She passed away in 2013, 5 years earlier, but the uplift in the value was in the estate, and subject to cgt.

So the reason for the CGT is that the house was sold 5 years after the death of the mother/testament.

At the risk of making more questions, I heard at work a couple of years ago about issues in a testament that was being fought over and because of that there was no valuation of the assets being transferred and no CAT until this was sorted out and not CAT liability, etc. I moved to another job and never heard of how that ended. Considering that this could have been something similar in cases of disputes of this kind if there are ongoing legal affairs/claims, isn't the valuation made when the estate is finally settled from that point of view? (I am not talking about the later on liquidation of the estate in favour of whoever is named in the testament?

1963timetunnel

we had no legal depute , it was easier to just put the house on the market .
as she did not want to sell the house to me .
she thought she would get more money .
she got an extra 5000 .
sad .
but there is always one .
rest of the family were happy to sell to me privately ,.
by the way golfer
thank you for reply .
tried replying on my phone but would not send .
only getting to computer .