Brilliant article. Can clearly see why some young people still vote ffg. Their failures aren't as apparent when mammy and daddy sort out all of your financial issues, including housing...
the housing crisis is a factor in that it has pushed people into having to pay inheritance tax where they might not have had to (due to excessively high prices), yes. but letting someone inherit a house without paying inheritance tax would have absolutely zero effect on mitigating the housing crisis.
getting an (at most) 33% mortgage on a house is probably the easiest way possible of buying a house. and as has been mentioned several times, in reality it probably won't be much more than about 10% for the vast majority anyway.
Monarchy may show how poor monarchy is as a system, but I’m not sure how it is an example of how poor hereditary taxation is.
If you are left a house by your parents in a will and you do not sell the house, do you still have to pay tax on the house ?
Yes. If the value is over the tax free amount.
No. I never agreed that anything was unfair. You keep responding to my posts but with guff which is unrelated to mine
You have proved nothing, except whatever circular "thinking" is going on in your own head
there's also this condition on inheriting a house tax-free if you've been resident in it:
"a child wishing to inherit a home worth €500,000 tax free would need to live in the family for three years leading up to the inheritance. In addition, they would not be allowed to own any other property and must reside in the property for six years after they take ownership – and are precluded from owning another property during the six year period."
https://www.chill.ie/blog/do-i-have-to-pay-tax-on-a-house-that-i-have-inherited/
Couldn’t make it up but they did. Especially the 6 years after part. More or less saying your having a laugh if you think your going to have anything handy in this place.
it's a fairly straightforward piece of logic - you're exempt from the tax if you've nowhere else to live. if you do have somewhere else to live, you lose the exemption.
and it stops people from say claiming the exemption, and then selling the house - which would make a mockery of the reason for the exemption.
It's nothing to do with the "super-wealthy" and neither that link nor any law on the statute books that I'm aware of expect you to do anything.
It's the entitlement:"they got something so we should get something too! Wahhhh!"
@magicbastarder (don't know how this multi-threading works now, sorry for being in the wrong order) - it gives someone a secure roof over their head which is the whole point of housing. And again - same as loans - why are you putting obstacles in place to stop someone from moving into a house they already own? Kafka would love this (not to mention the socialists most of people on here love to hate)
@Allinall perhaps you included my post in error - but I still don't see an answer to my question which was "why" not "what".
The whole thread is pure entitlement. Someone else is doing better, regardless of why, so they should pay me. Anyone who is doing better should be dragged down with us. Socialists won’t be happy until everyone is poor.
It is the government's prerogative to limit home ownership for the ordinary person. Inheritance tax aids this goal.
Taxes raised will be used to provide incentives for investment firms to purchase property which you can rent for 50 - 80% of your monthly income.
Don't worry you won't be passing on much to your children (if you can afford them)
You’ll become aware of it should you ever find yourself in a position where you’re obligated to pay taxes on an inheritance in Ireland, but just because you’re not aware of something doesn’t mean it doesn’t exist -
https://www.irishstatutebook.ie/eli/2003/act/1/section/11/enacted/en/html#sec11
It has everything to do with the “super wealthy” when the point is being made that it’s a tax on middle class savings, and your idea that because you inherit a property you shouldn’t have to pay tax on the value of your asset that as far as the State is concerned - you own it, you’re benefiting from it’s ownership, and you can leverage it to generate even greater wealth for any future generations should you decide to pass on the asset to someone else who will then become the beneficiary, and again have to pay tax based upon the value of the asset and their relationship to you.
It is quite the opposite. Inheritance tax helps to prevent wealthy families from hoovering up all the property and hoarding it through the generations.
It seems to be mainly an issue for urban middle class. There is agricultural property relief for those inheriting farms, because it is completely different, apparently, to inherit millions in agricultural land. I think it should be the same across the board.
I would like to pass on what I have built up to my kids (and also whatever my parents leave as I don't really have any need for it). I will look into ways to do this in the most efficient way possible. I would rather bulldoze the house than pass it on to the state.
Actually, if the government could get away with it, they would love to go back to pre-2008 housing policy. Anyone, regardless of ability to pay could get a low interest rate mortgage, loads of construction jobs and everyone felt like they were getting richer. Of course, it was all built on unsustainable levels of debt but no one seemed to give a shite about that at the time.
Says the poster who appear to be hanging their future on getting a juicy inheritance.
I would advise not to count one's chickens before they hatch. If you are lucky, you won't be left anything and then you won't have to worry about inheritance tax
the state doesn't get the house?
Imagine being pro higher taxes. The government laugh as they use your money to give their mates tax breaks and incentives.
Good for him/ her.
There is agricultural relief and business relief. Both are theoretically available to any citizen and reduce the amount inherited to 10% of it's value.
You are free to purchase agricultural land if you so wish. It is actually common enough that people do that. 7.5% stamp duty upfront mind which will eat into your savings. The recipient will either have to attain an agricultural qualification or lease the property to someone who is qualified. They also have to satisfy an asset test. And they have to keep the property for at least 6 years before disposing of it. You can do that if you want. Or invest your money in a company and if you set things up correctly, the beneficiary can avail of the 90% reduction.
If you inherit a house and want to sell it is it first subject to inheritance tax and then Cgt after you sell it?
The premise of the OP is unadulterated rubbish.
The inheritance will be subject to CAT.
If you later sell it, you will pay CGT on the difference between the CAT and the sale price unless it was your primary residence. Same as any other asset.
You have to pay the inheritance tax regardless of whether you sell it or not.
Capital gains only comes into play if the value goes up between when you inherited it and when you sell it, and then only if you haven’t lived in it as your main residence.
One annoying aspect of inheritance tax here is how people without children are treated
If I have a home worth 300k, I can leave it to a son or daughter without any inheritance tax to be paid.
If I leave it to a sibling or nibling (coz I don't have a child), they can only inherit about 32k before tax hits - so the 300k house will attract inheritance tax of about 90k. Gravy for the government!
Under no circumstances should the government tax what I leave to my kids. Everything I build up in my life is going to them. I've paid my taxes and enough is enough. It seems the wasters and leeches are not happy with ~35% on all earnings and at least 23% on whats purchased after earnings.
What do the wasters want if they're not happy with ~58% of everything as it stands? Fcukin communists.
Up to you to make your own planning.
You will be happy to know that whatever you leave your kids won't be taxed.
However your kids may be taxed depending on the value that is left to them.
The irony of going on about leeches and wasters while asserting that you don't want your children to have to contribute their fair share (well only a small amount in all likelihood) to the running of the State.
Actually, seeing as our effective corporate tax rate is only 12.4% as of 2021 which is very low by OECD standards (The US is 22.3% for comparison.) it'd be fairer to say your taxes are going to pay for corporate tax breaks more than leachers and wasters. It's not very communist though.
It's a shame we can't masquerade as charities so we can operate tax free like the governments' mates at the vulture funds.
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