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Halves on a house

  • 14-11-2019 5:34pm
    #1
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭


    Hi all. Looking for advice. Thinking of going halves on a house with my sister in Dublin. The plan would be that she’d rent 2 rooms under the rent a room scheme to go towards the mortgage.

    If she owned the house by herself the rent would not be liable to tax but I suspect that if I own half the house I’d have to pay tax on half the rent.

    Any way of working this so that I wouldn’t have a tax liability ??


Comments

  • #2
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    adam88 wrote: »
    Hi all. Looking for advice. Thinking of going halves on a house with my sister in Dublin. The plan would be that she’d rent 2 rooms under the rent a room scheme to go towards the mortgage.

    If she owned the house by herself the rent would not be liable to tax but I suspect that if I own half the house I’d have to pay tax on half the rent.

    Any way of working this so that I wouldn’t have a tax liability ??

    Are you going to live in it too?


  • #3
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    No. I’ve my own house and have lodgers in there already.

    Want to do things by the book but just wondering is there a way to legally avoid paying the tax


  • #4
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    adam88 wrote: »
    No. I’ve my own house and have lodgers in there already.

    Want to do things by the book but just wondering is there a way to legally avoid paying the tax

    If the rent pays anything off your mortgage repayments it's rental income and taxable.

    Your sister will have a CAT liability on use of half of the house.

    Best to talk to a tax advisor about it.


  • #5
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    davindub wrote: »
    If the rent pays anything off your mortgage repayments it's rental income and taxable.

    Your sister will have a CAT liability on use of half of the house.

    Best to talk to a tax advisor about it.

    Would she not be entitled to rent a room relief


  • #6
    gerbilgranny
    Registered Users, Registered Users 2 Posts: 516 ✭✭✭gerbilgranny


    Rent a room relief is where a homeowner rents out a room in their own home - their own principal private residence.

    Think of it as a 'make use of the spare room' initiative.


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  • #7
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    gerbilgranny wrote: »
    Rent a room relief is where a homeowner rents out a room in their own home - their own principal private residence.

    Think of it as a 'make use of the spare room' initiative.

    This would be her home. She’d be living in it and would be her residence. I’d merely be assisting her in buying the house. It would be an investment on my behalf but would be her home


  • #8
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    adam88 wrote: »
    This would be her home. She’d be living in it and would be her residence. I’d merely be assisting her in buying the house. It would be an investment on my behalf but would be her home
    How many names on the deeds?
    Who is borrowing the mula?
    How many names on the debt?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #9
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    Calahonda52 wrote: »
    How many names on the deeds?
    Who is borrowing the mula?
    How many names on the debt?

    Was thinking of going proper halves.

    Joint ownership, mortgage in both our names,,, it’s just I wouldn’t be living there She couldn’t afford it on her own


  • #10
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    Thanks.
    It might actually fly: let's see what the others think.
    .
    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/what-type-of-residence-qualifies.aspx

    “I can’t pay my staff or mortgage with instagram likes”.



  • #11
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    adam88 wrote: »
    Would she not be entitled to rent a room relief

    She would be.

    But if any of the rent benefits you directly or indirectly, you are not entitled to it.

    She is receiving a gift of half of the house, there are Capitial Acquisitions Tax implications.


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  • #12
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    davindub wrote: »
    She would be.

    But if any of the rent benefits you directly or indirectly, you are not entitled to it.

    She is receiving a gift of half of the house, there are Capitial Acquisitions Tax implications.
    How do you figure that?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #13
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 26,084 ✭✭✭✭Mrs OBumble


    davindub wrote: »
    She would be.

    But if any of the rent benefits you directly or indirectly, you are not entitled to it.

    She is receiving a gift of half of the house, there are Capitial Acquisitions Tax implications.

    No she's not, if both names are on the deeds.


  • #14
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    I would maintain ownership and control of half the house, if or when it is sold I would receive half the sale of the house.

    What we are currently thinking the tax situation would be is the following

    For e,g. Total rent from tenants (housemates)
    10000

    She would get half and pay no tax on it (rent a room relief) I would also receive half and pay tax on my half.

    Could I sign over my half of the rent and let her pay that towards the mortgage ???

    I want to stress I’m not looking to evade paying tax only avoid or reduce my liability


  • #15
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Calahonda52 wrote: »
    How do you figure that?

    The ability of the sister to claim ROR?

    Revenue Tax Briefing

    "4.1 Sole or main residence
    The room or rooms must be in a residential premises situated in the State that is occupied by an individual as his or her sole or main residence during the particular tax year. An individual may live in more than one residence but can only avail of rent-a-room relief in respect of his or her sole or main residence. In general, an individual’s sole or main residence is that individual’s home for the greater part of the time and where friends and correspondents would expect to find him or her. The individual does not have to own the residence and it could, for example, be occupied as rented accommodation.
    "

    I don't think the legal title to the property is material, once the rent is entirely received by the sister as her income and not the OP's, it should be claimable under ROR.


  • #16
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Mrs OBumble wrote: »
    No she's not, if both names are on the deeds.

    Sorry, where have you established this from?


  • #17
    dubrov
    Registered Users, Registered Users 2 Posts: 3,609 ✭✭✭dubrov


    davindub wrote:
    Sorry, where have you established this from?


    There is no gift. The sister is buying half of the house herself


  • #18
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    davindub wrote: »
    Sorry, where have you established this from?
    .
    the first clue is in the title.
    .
    The rest is explicit in some of the OP's replies

    “I can’t pay my staff or mortgage with instagram likes”.



  • #19
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Calahonda52 wrote: »
    .
    the first clue is in the title.
    .
    The rest is explicit in some of the OP's replies

    I wasn't confused about the title situation. The post I replied to appeared to either state that ROR would not apply or that gift tax would not apply if there were two names on the deeds, gift tax would apply if the OP were not to receive a MV rental income on his half of the property from his sister or a rental income directly from the tenants and I covered the criteria for ROR in my reply to you.


  • #20
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    dubrov wrote: »
    There is no gift. The sister is buying half of the house herself

    Actually apologies for this, after re-reading my reply to the OP, it should have read "if she is receiving a gift of use of half of the house"

    This is referring to CAT implications of free use of a house and arm's lengths rules for rent received from a family member.


  • #21
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    Can someone break this down to simple English.

    If we buy the hosue together does she have to pay cgt on my half that I am allowing her to use???

    What happens to the rent that is received from the lodgers ??


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  • #22
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,437 ✭✭✭✭Marcusm


    adam88 wrote: »
    Can someone break this down to simple English.

    If we buy the hosue together does she have to pay cgt on my half that I am allowing her to use???

    What happens to the rent that is received from the lodgers ??

    If she has a 50% ownership interest in the house, I do not see that it can be a gift unless she has exclusive use of the house. You are not entitled to rent a room relief. She probably is. It would be indicative (but not determinatory) of a gift if she received and retained the lodger’s rent. Using the lodger’s rent to pay your half of the mortgage would still necessitate you taxing the rent in your own hands with limited entitlement (if any) to interest relief.


  • #23
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    One way to structure this while not having to pay tax is that you both own half the house, both pay half the mortgage and the person living there received 100% of the lodgers rent.

    Then 3000 can be gifted per year tax free from the occupier to the other owner. It should cover most of their half of the mortgage, if the other owner has a partner/spouse then you can give them 6k per year tax free.

    Lots of other ways to work this also but unfortunately they can't be discussed here.


  • #24
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    One way to structure this while not having to pay tax is that you both own half the house, both pay half the mortgage and the person living there received 100% of the lodgers rent.

    Then 3000 can be gifted per year tax free from the occupier to the other owner. It should cover most of their half of the mortgage, if the other owner has a partner/spouse then you can give them 6k per year tax free.

    Lots of other ways to work this also but unfortunately they can't be discussed here.

    No, you can't claim rent is a gift.


  • #25
    Professor Genius
    Banned (with Prison Access) Posts: 391 ✭✭Professor Genius


    adam88 wrote: »
    Hi all. Looking for advice. Thinking of going halves on a house with my sister in Dublin. The plan would be that she’d rent 2 rooms under the rent a room scheme to go towards the mortgage.

    If she owned the house by herself the rent would not be liable to tax but I suspect that if I own half the house I’d have to pay tax on half the rent.

    Any way of working this so that I wouldn’t have a tax liability ??

    Halves on a house? Celtic Tiger is well and truly back !


  • #26
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    davindub wrote: »
    No, you can't claim rent is a gift.

    Who said the gift is rent? Co-owning a house and the occupier receiving rent a room money does not exclude the co-owners from gifting money to each other if they wish to.


  • #27
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    How much would a tax consultant or tax accountant charge to sort this out


  • #28
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    adam88 wrote: »
    How much would a tax consultant or tax accountant charge to sort this out
    Sort what out?: anyway most folk won't open a file for less than 2k

    “I can’t pay my staff or mortgage with instagram likes”.



  • #29
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    Who said the gift is rent? Co-owning a house and the occupier receiving rent a room money does not exclude the co-owners from gifting money to each other if they wish to.

    I say it is. An revenue auditor will say it is. Why are you proposing it? I couldn't believe that anyone who has any professional knowledge would even suggest this. An accountant or tax advisor wouldn't even file this for you.

    What you are proposing is tax evasion and a silly one at that, Revenue are very tuned into idiots who think they can swop income for gifts.


  • #30
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    davindub wrote: »
    I say it is. An revenue auditor will say it is. Why are you proposing it? I couldn't believe that anyone who has any professional knowledge would even suggest this. An accountant or tax advisor wouldn't even file this for you.

    What you are proposing is tax evasion and a silly one at that, Revenue are very tuned into idiots who think they can swop income for gifts.

    There is no obligation to file a gift of 3k or under so you are showing your lack of knowledge there.

    A revenue auditor can sing for it, he cannot do anything about a gift between individuals of 3k or under simple as that.

    Also Using the small gift exemption for transferring money between individuals will 100% be given as advise from a tax advisor. It’s a perfectly legal way of moving money and it is common place to use it in ways like the above and for a multitude of other similar types of scenarios.


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  • #31
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    There is no obligation to file a gift of 3k or under so you are showing your lack of knowledge there.

    A revenue auditor can sing for it, he cannot do anything about a gift between individuals of 3k or under simple as that.

    Also Using the small gift exemption for transferring money between individuals will 100% be given as advise from a tax advisor. It’s a perfectly legal way of moving money and it is common place to use it in ways like the above and for a multitude of other similar types of scenarios.

    For gods sake, your IT return...…it's 3k short....that is where the offense is being committed. Whomever files it for you signs and submits and when they do, there is a nice red warning about deliberate or carelessly submitted returns. So no lack of knowledge on the subject.

    Have you experience in telling revenue to go sing for it? I'll tell you if revenue ask you to make a prompted qualifying disclosure and you didn't rectify the above = prison time as well as the interest and penalties.

    As I stated it is tax evasion, I am categorically telling you, if you reduce your Case V income by 3k in lieu of a gift, you are committing an offense by filing. I don't know what tax advisor you used, but if you have done this on the advice of one, you had better rectify the situation.


  • #32
    lozenges
    Registered Users Posts: 290 ✭✭lozenges


    New question (somewhat related)
    If two adult siblings buy a house jointly (mortgage, not cash) for their parent to live in what would be the tax implications? If the parent is retired.


  • #33
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    davindub wrote: »
    For gods sake, your IT return...…it's 3k short....that is where the offense is being committed. Whomever files it for you signs and submits and when they do, there is a nice red warning about deliberate or carelessly submitted returns. So no lack of knowledge on the subject.

    Why would your income tax return be 3k short? Firstly a large number of people don’t make a tax return as they are paye and secondly a private gift of 3k or under does not need to be filed, it’s not income it’s a gift.

    You don’t even need to make a return on the gift if it’s over 3k unless it’s over 80% of the category threshold.

    davindub wrote: »
    Have you experience in telling revenue to go sing for it? I'll tell you if revenue ask you to make a prompted qualifying disclosure and you didn't rectify the above = prison time as well as the interest and penalties.

    As I stated it is tax evasion, I am categorically telling you, if you reduce your Case V income by 3k in lieu of a gift, you are committing an offense by filing. I don't know what tax advisor you used, but if you have done this on the advice of one, you had better rectify the situation.

    To me it looks like you are confused? Are you talking about the person in receipt of the rent declaring 3k less than they receive? As if you are I don’t know why you are, that’s not what’s being discussed. Why would they do that especially in this situation where the money is tax free?

    This discussion is not about the person who received the rent it’s a about the person who gets an unrelated cash gift.

    Person A owns half a house, pays half the mortgage and doesn’t live there.
    Person B owns half a house, pays half the mortgage and lives there. They also rent out a room under the rent a room scheme and they keep all the rent. They declare all the rent and claim rent a room relief thus pay no tax on it.

    Once a year person B gifts person A 3k. No tax or declaration required on either side as it’s exempt under the small gifts exemption.


  • #34
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    Why would your income tax return be 3k short? Firstly a large number of people don’t make a tax return as they are paye and secondly a private gift of 3k or under does not need to be filed, it’s not income it’s a gift.

    You don’t even need to make a return on the gift if it’s over 3k unless it’s over 80% of the category threshold.




    To me it looks like you are confused? Are you talking about the person in receipt of the rent declaring 3k less than they receive? As if you are I don’t know why you are, that’s not what’s being discussed. Why would they do that especially in this situation where the money is tax free?

    This discussion is not about the person who received the rent it’s a about the person who gets an unrelated cash gift.

    Person A owns half a house, pays half the mortgage and doesn’t live there.
    Person B owns half a house, pays half the mortgage and lives there. They also rent out a room under the rent a room scheme and they keep all the rent. They declare all the rent and claim rent a room relief thus pay no tax on it.

    Once a year person B gifts person A 3k. No tax or declaration required on either side as it’s exempt under the small gifts exemption.

    Regurgitation of unrelated matters is not going to be helpful. Thresholds, small gift exemptions are all CAT matters which only apply if it is a gift, this is rental income you are trying to disguise as a gift.


  • #35
    1874
    Registered Users, Registered Users 2 Posts: 2,404 ✭✭✭1874


    davindub wrote: »
    Regurgitation of unrelated matters is not going to be helpful. Thresholds, small gift exemptions are all CAT matters which only apply if it is a gift, this is rental income you are trying to disguise as a gift.


    TBH the 2 dotn have to be connected, the person receiving rent a room benefit is availing of that, they can seperately gift anyone 3k if they please, the occupant is availing of rent a room, its npt like they are renting the property, Id say there are bigger things for revenue to go chasing than things which they already approve of.


  • #36
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    1874 wrote: »
    TBH the 2 dotn have to be connected, the person receiving rent a room benefit is availing of that, they can seperately gift anyone 3k if they please, the occupant is availing of rent a room, its npt like they are renting the property, Id say there are bigger things for revenue to go chasing than things which they already approve of.


    You would say based on personal experience of dealing with Revenue or just unjustified ignorant opinion? Sounds like the latter.

    As I said, calling rent a gift is idiotic. According to you two, revenue couldn't state the gift of free use of a house and an annual payment are in fact related?


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  • #37
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭Calahonda52


    davindub wrote: »
    You would say based on personal experience of dealing with Revenue or just unjustified ignorant opinion? Sounds like the latter.

    As I said, calling rent a gift is idiotic. According to you two, revenue couldn't state the gift of free use of a house and an annual payment are in fact related?

    Play the ball not the man. No need for personal attacks in here.

    “I can’t pay my staff or mortgage with instagram likes”.



  • #38
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    davindub wrote: »
    You would say based on personal experience of dealing with Revenue or just unjustified ignorant opinion? Sounds like the latter.

    As I said, calling rent a gift is idiotic. According to you two, revenue couldn't state the gift of free use of a house and an annual payment are in fact related?

    You way of looking at this is arseways, you are going out of your way to drum reasons this can’t happen.

    Going by your logic any two people with a financial connection to each other cannot avail of the small gifts exemption, yet the small gifts exemption is clearly open to all people and is a fundamental rule in irish taxation.

    You cannot stop private individuals availing of a completely legal way of transferring money between each other. If a company tried to give their employee a 3k cash gift from a company account then that’s obviously nonsense and would not be eligible however if the owner of the company gave a 3k gift from his private account to an employee then that is totally above board.

    No matter how much you want to you can’t invent a rule that excludes people from using the small gifts exemption, you appear to really want to but you can’t.

    Saying person B can’t gift 3k to A because they are receiving rent is like saying I can't gift 3k to someone because it’s a way of transferring money from my employer to someone else. That’s the type of knots you are tying yourself in.


  • #39
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    You way of looking at this is arseways, you are going out of your way to drum reasons this can’t happen.

    Going by your logic any two people with a financial connection to each other cannot avail of the small gifts exemption, yet the small gifts exemption is clearly open to all people and is a fundamental rule in irish taxation.

    You cannot stop private individuals availing of a completely legal way of transferring money between each other. If a company tried to give their employee a 3k cash gift from a company account then that’s obviously nonsense and would not be eligible however if the owner of the company gave a 3k gift from his private account to an employee then that is totally above board.

    No matter how much you want to you can’t invent a rule that excludes people from using the small gifts exemption, you appear to really want to but you can’t.

    Saying person B can’t gift 3k to A because they are receiving rent is like saying I can't gift 3k to someone because it’s a way of transferring money from my employer to someone else. That’s the type of knots you are tying yourself in.

    No, the issue is whether the payment is case v income or a gift. The amount or source of the funds is not relevant.


  • #40
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    davindub wrote: »
    No, the issue is whether the payment is case v income or a gift. The amount or source of the funds is not relevant.

    If the money is given as a gift then it's a gift. You have no way of proving it either way the same as with any gift given under the small gifts exemption.

    Person B can gift person A 3k per year tax free full stop, take twist out of your knickers and move on.


  • #41
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,437 ✭✭✭✭Marcusm


    Alonso Big Cargo wrote: »
    One way to structure this while not having to pay tax is that you both own half the house, both pay half the mortgage and the person living there received 100% of the lodgers rent.

    Then 3000 can be gifted per year tax free from the occupier to the other owner. It should cover most of their half of the mortgage, if the other owner has a partner/spouse then you can give them 6k per year tax free.

    Lots of other ways to work this also but unfortunately they can't be discussed here.

    You need to acquaint yourself with section 811C!


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  • #42
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    If the money is given as a gift then it's a gift. You have no way of proving it either way the same as with any gift given under the small gifts exemption.

    Person B can gift person A 3k per year tax free full stop, take twist out of your knickers and move on.

    Ah great, so you are now admitting tax evasion, just you think revenue can't prove that it is income rather than a gift?


  • #43
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 26,084 ✭✭✭✭Mrs OBumble


    noxxy, you're smart at lots of things - but tax ain't one of them. And I say that knowing 9/10th of nothing about it myself.

    If a property generates income, then legally that is income split between the owners of that property, divided backed on the ownership proportions. They have to pay tax on that income, based on their circumstances.

    What the owners do with the cash after that is up to them, and may or may not have additional tax liabiliites (eg gift duty).

    The question about getting 1/2 a house to live in for free is an interesting one. I have no idea how Revenue would weight up the relative value of this (eg should the resident-owner also be paying rent to the non-resident one) - vs the value of the 24x7 property management, maintenance and on-site security which they are providing. Suspect they might be regarded as cancelling each other out.


  • #44
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Mrs OBumble wrote: »
    noxxy, you're smart at lots of things - but tax ain't one of them. And I say that knowing 9/10th of nothing about it myself.

    If a property generates income, then legally that is income split between the owners of that property, divided backed on the ownership proportions. They have to pay tax on that income, based on their circumstances.

    Tax very much is one of them, particularly around CAT I know it inside out.

    You are incorrect of course saying that the income is legally split, particularly when we are talking about rent a room as we are in this instance.
    davindub wrote: »
    Ah great, so you are now admitting tax evasion, just you think revenue can't prove that it is income rather than a gift?

    I’m admitting nothing? Sure I am not involved in this situation at all. Revenue will be very very hard pressed to prove a 3k gift between co-owners/siblings is anything but a gift. Revenue won’t even have any interest in it, 3k gifts between private individuals that legally doesn’t have to be declared? What’s going to flag their interest?

    And btw I’m not saying take a chance sure they won’t know, in my opinion I see no reason these two people cannot legally avail of the small gifts exemption, those saying otherwise are wrong imo.

    Next you will tell me half my wedding presents were income or some other nonsense.


  • #45
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Alonso Big Cargo wrote: »
    I’m admitting nothing?

    Kinda pinned your colours to the mast here though...:pac::
    https://www.boards.ie/vbulletin/showpost.php?p=110621116&postcount=18
    Alonso Big Cargo wrote: »
    Ha ha not a chance would I report anyone, I say fair play to them and anyone who saves themselves a few bob. The amount I’ve saved by paying cash in hand for rent or to trades peoples etc and other things here and there over the years is significant so I’m quids in on black market stuff rather than people “stealing :rolleyes:” from me.

    I don’t know anyone in real life with this sort of attitude, everyone I know would say fair play to someone finding ways to pay less tax.


  • #46
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Alonso Big Cargo wrote: »
    Tax very much is one of them, particularly around CAT I know it inside out.

    You are incorrect of course saying that the income is legally split, particularly when we are talking about rent a room as we are in this instance.



    I’m admitting nothing? Sure I am not involved in this situation at all. Revenue will be very very hard pressed to prove a 3k gift between co-owners/siblings is anything but a gift. Revenue won’t even have any interest in it, 3k gifts between private individuals that legally doesn’t have to be declared? What’s going to flag their interest?

    And btw I’m not saying take a chance sure they won’t know, in my opinion I see no reason these two people cannot legally avail of the small gifts exemption, those saying otherwise are wrong imo.

    Next you will tell me half my wedding presents were income or some other nonsense.

    No proof is actually required, just the opinion of an auditor.

    Your wedding gifts were presumably gifts? You didn't receive them in order to evade income tax presumably?


  • #47
    adam88
    Registered Users, Registered Users 2 Posts: 1,609 ✭✭✭adam88


    This escalated quickly, I’m sure this situation is not unique. There’s surely a lot of people that Are separated and own half the house with their ex etc and one person is left in the house while the other person moved out but still legally owns half. While the one that remains rents out a room. Not a million miles apart from my situation


  • #48
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    barneystinson wrote: »
    Kinda pinned your colours to the mast here though...:pac::
    https://www.boards.ie/vbulletin/showpost.php?p=110621116&postcount=18

    Nothing illegal in paying cash, it’s up to the recipient to look after their tax affairs.


  • #49
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Alonso Big Cargo wrote: »
    Nothing illegal in paying cash, it’s up to the recipient to look after their tax affairs.

    I knew that you would say exactly that. Fact remains you’re a willing participant in, and happy to facilitate, others’ tax evasion. That’s fine, just own it, don’t be trying to skirt around it like ;)


  • #50
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    adam88 wrote: »
    This escalated quickly, I’m sure this situation is not unique. There’s surely a lot of people that Are separated and own half the house with their ex etc and one person is left in the house while the other person moved out but still legally owns half. While the one that remains rents out a room. Not a million miles apart from my situation

    Some support orders are exempt from CAT.

    Honestly get professional advice really, for the sake of a few hundred euros you will more than likely get a workable solution.


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