My parents have a number of rental properties.
My husband and I have been very lucky to have been given the opportunity to live in one of these rental properties rent free for the last 5 years. Eventually my parents plan to transfer the house into our name.
I think we will stay in this house for another 2/3 years and then move to a bigger house. We will probably keep the current house as a rental property.
My question is if we would be exempt from any CAT or if my parents would be exempt from CGT on any gain from the house ( I am aware that they would have to transfer it to me at current market rate (even though no cash changing hands) and pay CGT on any gain since they purchased the property). The value of the property would be under the €320k threshold for parent to child but looking into the future for any other inheritance it would be good if I was exempt from paying CAT on this house.
Would I have to stay in the house for quite a number of years after the transfer if I was to be exempt? Are rental properties acceptable for exemptions or would it only be the case if this property was also my parents sole residence?
Any advise would be great. Thanks.