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Gift me a site or sell it for me?

Options
  • 01-02-2021 2:56pm
    #1
    waterfordwendy
    Registered Users Posts: 32 ✭


    Hello,

    My father is 61-years-old and he owns a site which he wants to pass on to me. I have told him I would like to sell it to purchase a home closer to near where I work. That is all fine.

    I have had some people tell me it would make more sense for my father to sell the site and then gift the money to me. Otherwise I would get hit with further taxes if the site is gifted to me and then I go and sell it.

    My father is not keen on this idea as he thinks he might lose his medical card if he does this. He said he would rather wait until he is 70 when he will have a free medical card, and then maybe sell it for me then. He said we can go the route of him transferring the site to me before then if I like, and then I sell it.

    Can anyone please advise on what we should here? Neither of us are knowledgeable about any of this (tax, inheritance, etc.) and it seems like we are twice as confused after asking people we know.

    Thanks,

    Cathy


Comments

  • Options
    #2
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    First of all, there is no automatic medical card at age 70, that was scrapped.

    It is means-tested. The means-test is generous.

    There is an automatic GP Visit card at age 70 for everybody.


  • Options
    #3
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    Option A - he sells site

    He may have to pay CGT, depending on whether he makes a gain or not.

    Then he passes cash to you.

    If the amount is over your lifetime group A limit of 335k, then you may have to pay CAT


  • Options
    #4
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    Option B - he gifts the site to you


    This is more complex, as there is potentially both CGT and CAT in the same transaction.

    https://www.revenue.ie/en/gains-gifts-and-inheritance/credits-you-can-claim-against-cat/credit-for-capital-gains-tax-cgt.aspx



    If this is a valuable asset, I suggest getting legal/accountancy advice.


  • Options
    #5
    skooterblue2
    Closed Accounts Posts: 6,816 ✭✭✭skooterblue2


    Don't cheapskate on boards, pay for professional advice, it's cheaper in the long run, when you are dealing with an asset of that value.


  • Options
    #6
    Deeec
    Registered Users Posts: 4,706 ✭✭✭Deeec


    I agree you should speak to a tax adviser regarding the tax implications.

    Also have you consulted the county council to see how likely someone outside of your family is to get planning permission on the site. This may be your biggest problem with selling the site.


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  • Options
    #7
    listermint
    Registered Users Posts: 33,613 ✭✭✭✭listermint


    There's an argument to be made not to orient your entire existence into a house beside your job too though.

    Weigh up all the options including work. But don't let proximity to work be to sole thing. Work can go away...


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