Second property to be occupied by a relative

Diemos · 30-10-2018 10:43am #1

I have a second property, due to be vacated in the next few weeks.
A relative of mine is looking for a new rental property while they save with their partner for a place of their own.

I'm thinking of offering my place to them rent free.
The property is not in an rpz.
Are there any tax implications of such an arrangement?

Victor · 30-10-2018 11:02am

Potentially, you are giving them a gift and CAT may apply. With no income, will you be able to write off your expenses?

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/index.aspx

Diemos · 30-10-2018 11:49am

Victor wrote: »

Potentially, you are giving them a gift and CAT may apply. With no income, will you be able to write off your expenses?

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/index.aspx

There are no expenses, other than white goods.
I don't see the 12 to 18 month period costing me much if anything.

Marcusm · 30-10-2018 12:00pm

Diemos wrote: »

There are no expenses, other than white goods.
I don't see the 12 to 18 month period costing me much if anything.

Enter into a caretaker agreement rather than a lease.

ross2010 · 30-10-2018 12:41pm

Even with a caretaker agreement in place they are potentially exposed officially for gift tax as they are receiving the benefit of living there (our accountant told us this approx 7 years ago but don't think it has changed). You would not be exposed for tax provided you are not receiving any financial gain. If the relative is a dependant (child) you can gift them without any tax burden an amount of 1k per month and so could write off the rental against that.

Second property to be occupied by a relative

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