1 in 10 inherited their home

Larbre34

https://www.boards.ie/discussion/comment/120008320#Comment_120008320

Very few plan what, their last will and testament??

Of course they do. The vast majority do! If for no other reason than to begrudge the taxman even one cent more than he need get.

Besides that, people have worked hard and gone through hard times to provide for their families in their life, so unless there is some massive schism that ruins a relationship along the way, that's obviously going to continue in inheritance.

I find it odd that you think well organised generational inheritance is exceptional in Ireland. Am I taking you up wrong?

Flinty997

https://www.boards.ie/discussion/comment/120008468#Comment_120008468

Not just a will. If they are wealthy they are often running a business, or a farm and don't pass over the running of it until far too late. Its quite a common tale.

almostover

https://www.boards.ie/discussion/comment/120000238#Comment_120000238

Rubbish. Any family home will have been paid for using income that has already been taxed. If one inherits a house from a parent there has been huge sums of tax paid by virtue of the parents owning that home. They would likely have paid a mortgage with their income over a period of 20+ years, income that was received after tax. Why should that asset be taxed again upon transfer?

magicbastarder

because it's taxed de novo, the person receiving it did not pay tax on it, so it's not as if the house 'owes' them anything. the previous history of the building is immaterial once the recipient has been living away from it.

when i buy a, say, mouse for my computer - a 23% tax is added, even though the income i earned to buy the mouse has already been taxed. this is normal. things are taxed multiple times.

herbalplants

https://www.boards.ie/discussion/comment/120009319#Comment_120009319

How can you explain that lots of countries have no inheritance tax and yet they don't have a housing crisis either.

magicbastarder

did anyone suggest that inheritance tax would prevent a housing crisis? i'm not sure what the argument you're making is, so i'm not sure how to react?

wrangler

https://www.boards.ie/discussion/comment/119999848#Comment_119999848

A lot of very rich people are buying farm land now purely for the concessions on transfer, typically there's people that'll abuse every concession ,

A million euros of farmland will attract only ten percent of the tax on transfer of a million euro house, ........ millionaires and even billionaires are panicking now to convert their assets to farmland

StupidLikeAFox

https://www.boards.ie/discussion/comment/120009200#Comment_120009200

So 335k tax free off the back of other people's labour isn't enough for you then.

I say that as someone who will be likely paying a small bit of inheritance tax in the future before you think I am a begrudger

Flinty997

These "other people" strangers I guess.

Yellow_Fern

https://www.boards.ie/discussion/comment/120009990#Comment_120009990

off the back your parents labour, you mean? Id really contest this notion that inheritance is money for nothing. It depends on the family, but many people will doing an awful lot of work for parents over the years, and in later years, you might be providing intensely time consuming care. The 335k is a life time limit. In theory, every cent you receive over 3k should be included in that figure, from staying in your parents holiday house, a gift of an old car, to the plumping job your dad does for your renovation build to every heirloom and so forth. If the system appears generous, it is only because people tend take liberties by not following the details.

bad2thebone

https://www.boards.ie/discussion/comment/120009948#Comment_120009948

I remember a young farmer sold his land outside Ennis to a building developer for millions could have been 14 million or something , building developer went bust. Farmer bought it back for less than a million.

Anyone who's buying up land to offset their obligations are playing with fire. It'll always goes up in smoke one way or the other.

Urbanites have no experience with the land, it's worth nothing to them. They use it as a way to dodge the system. Land should only be available to those who'll utilize it for good intentions.

Strumms

https://www.boards.ie/discussion/comment/119997833#Comment_119997833

Leo Varadkar has spent around 4.5 years as the Taoiseach of this country… Including in pre covid times.

and many more years in influential government positions prior to that…

so saying X should be done versus actually ‘doing it’… he’s simply sending sound bytes out on the airwaves.

I doubt any FG government especially one with Leo at the helm would wish to cancel the urchinesque cash grab that is inheritance tax..

AnRothar

https://www.boards.ie/discussion/comment/120010108#Comment_120010108

He wasn't young.

Online newspaper articles state €18.8 million

elperello

https://www.boards.ie/discussion/comment/120009319#Comment_120009319

Just to take your example of buying a mouse for the sake of discussion.

It is a commercial transaction with a willing seller and a willing buyer.

Quite correctly the Government charged with raising revenue to run the country taxes commercial transactions.

Death and inheritance affect two unwilling participants.

The deceased most likely would prefer not to die and most inheritors would prefer not to lose a close relation.

The Government has managed to persuade a lot of people that there is some conflation between commercial transactions and property transfers within a family where no money changes hands.

bad2thebone

https://www.boards.ie/discussion/comment/120010222#Comment_120010222

I think there was a few farmer's in Clare who basically got 1000% plus comeback on their land. They knew exactly what they were doing. And I say fair play to them. Nature just keeps on giving....

Ubbquittious

We are all trapped in a system.

Donald Trump

https://www.boards.ie/discussion/comment/120009948#Comment_120009948

Might not really be worth it though wrangler if all they were leaving was a million. The beneficiary would have to keep their own assets under 250k (So no house) and would have to hold onto it for 7 years before selling.

If I'm a townie with a million cash, I buy 900k of land with it (+ SD + other fees/expenses). The person i leave it to has to hang onto it for 7 years after I die.

If I leave the million cash, they pay about 220k tax on it and pocket 780. But they have it immediately rather than waiting to see what the 900k land will be worth in 7 years

wrangler

https://www.boards.ie/discussion/comment/120010733#Comment_120010733

It isn't compulsory to go for business relief. there's still the choice to pay the ful CAT.

As you say it's when the figure goes up into the millions you'd be considering the relief, eg our Airline boss's ability to give all his children €3m worth of land each capital aquisition tax free ....... he must have more than that much land accumulated at this stage.

A local stud owner is reputed to have 5000 acres accumulated at this stage and I'm sure it's not because of the children's love of farming

Big Gerry

Inheritance tax is a disgusting tax it should be abolished completely.

If you work hard all your life to build up a nestegg you should be able to pass it down to your children without getting robbed again by the taxman.

Donald Trump

https://www.boards.ie/discussion/comment/120011008#Comment_120011008

Well there is no asset test with business relief (compared to Ag relief) as far as I remember. But there are extra conditions as regards involvement of the beneficiary both before and after testator dies.

My example was just as to the benefit of a non-farmer buying land to save inheritance tax. As you say, the man with the 5000 acres is going to set it up anyway. Or at least the kids will make sure to avail of it.

Some lads bought land in this area but the ones I am aware of had gotten land away for building and just ploughed it back into more land and retired. None of their next generation work it.

There is a tillage man near me with the guts of 1000 acres. He farms it with one son but has two other kids. The other kids have their own houses. I am sure he'll leave something to the other two as well but he would need to be careful if he wanted them to get the Ag relief. Although they could try to bump up the valuation to meet the asset test.