Inheritance

C

crobo

Guest
Hi,
My 3 siblings and I are due to inherit just under 500,000 euros worth of property from my dad. We will inherit equally so will each be, I believe, under the inheritance tax limit. In addition to the propery I am about to inherit I also own my own house and am getting a first time buyers allowance. Will that be affected in any way? Any other possible implications from a tax point of view?

If we choose to inherit the entire property now and choose to subdivide it later into 4 lots are there any implications there? Would it be better to do the subdividing now before we inherit?
 
Group A Threshold is €521,208 for inheritances in 2008. Provided none of you have any previous gifts/inheritances from a parent then your respective 1/4 shares of the €500,000 would be under your thresholds and no CAT would be due. The inheritance of a share in this property would have no relevance to your other house ( presumably your PPR ) or the associated TRS or S/Duty relief.

If you are all inheriting it now then it is already owned 4 ways so subdivision into 4 down the line is not relevant. If you retain it and sell it at a future date then its value on inheritance would be taken as it's cost against any CGT due on a future disposal, should the disposal price then exceed the value now.
 
Crobo, I'd love to need as much tax advice like you. Between asking VAT questions and inheritance tax questions your like someone asking questions on behalf of his/her own clients rather than referring them to someone who knows?
 
I never actually noticed but The MOB is right, according to his posts Crobo is moving abroad, registering for VAT and now inheriting a house. He's also thinking about renting a house out!
 
If a person is gifted a largish sum of money, say €50k+ from an elderly parent must that sum of money be disclosed to the revenue in the year it is received or can it form part of the overall tax return of the person when they receive their final inheritance on the death of the parent?
 
BOXtheFOX said:
If a person is gifted a largish sum of money, say €50k+ from an elderly parent must that sum of money be disclosed to the revenue in the year it is received or can it form part of the overall tax return of the person when they receive their final inheritance on the death of the parent?
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You would need to do a return within four months of the date of the gift. Remember to take of the small gift exemption of €3,000.
 
Thanks for that. Just to clarify the situation further. A person is gifted a largish sum of money, say €50k+ from an elderly parent in expectation of the parents death. There is a will in existance which states that the person to whom the money is being gifted will eventually inherit the elderly parents estate and that this €50k+ is being gifted prior to the death of the elderly parent as part of their inheritance.
Can this €50k+ be rolled in to the inheritance tax calculations at a future date or must it be returned and taxed immediately?
 
No insult meant at all.

I mean exactly what I said......

Think about it for a second, what's the name of the exemption?? SMALL GIFT........ Is the gift of a house a small gift?

It's not like the €1,270 CGT allowance.

Go read IT39
 
If a person is gifted a largish sum of money, say €50k+ from an elderly parent must that sum of money be disclosed to the revenue in the year it is received or can it form part of the overall tax return of the person when they receive their final inheritance on the death of the parent?
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If the substantial gift is less than 80% of the treshhold you do not have to advise revenue

See [broken link removed] When to file a Gift Tax Return?
 
Iceman732 said:
Can't take off the small gift exemption!!!!

Idiots
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Iceman732 said:
No insult meant at all.

I mean exactly what I said......

Think about it for a second, what's the name of the exemption?? SMALL GIFT........ Is the gift of a house a small gift?

It's not like the €1,270 CGT allowance.

Go read IT39
Click to expand...

As I understand it, S.69 CATCA 2003 allows one to deduct the first €3,000 (previously €1,270) of the total value of all gifts from any one disponer in any year. So the gift of a house value €300,000 from a parent would (a) be under the relevant group A threshold for parent to child (assuming no previous gifts/inheritances from that class) and (b) carry a value for CAT purposes of €300,000 - €3,000 = €297,000 for aggregation with any future gifts/inheritances and (c) be under the 80% of threshold used for CAT declaration purposes.

The exemption is not intended only for gifts of up to €3,000. It may be deducted from, say, a cash gift of €50,000 leaving an accountable gift of €47,000. In that respect it is, in fact, like the CGT annual exemption.
 
Iceman732 said:
No insult meant at all.

I mean exactly what I said......

Think about it for a second, what's the name of the exemption?? SMALL GIFT........ Is the gift of a house a small gift?

It's not like the €1,270 CGT allowance.

Go read IT39
Click to expand...

You're wrong, as Graham_07 has pointed out. BTW, when you call people idiots, insult is generally taken as being intended. Might be worthwhile for you to re-read the .
 
What is the Tax hear in Ireland on money inherited from a sister who lived and died in England?
 
[broken link removed]

This is an 89 page document. Towards the end there are examples of people who inherit from overseas.
 
re the inheritance from a sister abroad, the rule is, if either the sister or yourself is resident or ordinarily resident in Ireland then Inheritance tax may be due depending on the value of the inheritance and the tax free amount you are entitled to as a sister.

As far as I know anyway.....
 
Sherman said:
You're wrong, as Graham_07 has pointed out. BTW, when you call people idiots, insult is generally taken as being intended. Might be worthwhile for you to re-read the .
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Ok fair enough about the idiots comments but I find it really irritating when when people give ill-advised information.

As for me being wrong about the €3,000 being taken off an inheritance, I'm sure you'll be delighted to know that I am in fact correct.

If I could refer you to CATA76 S53 and CATCA S69 and as Graham mention S69 CATA 2003:

Just to clarify the point for anyone who hasn't got legislation beside them, the €3,000 cannot be taken off an inheritance! The OP speaks of inheriting a house etc... Therefore in computation he will not be able to deduct the €3,000

As I mentioned before, the name of the exemption is the small gift exemption. A gift is not an inheritance. So in the situation of a gift the €3,000 can be taken off the total amount, naturally various restrictions apply.

Should anyone need further information on Capital Acquisitions Tax I recommended you seek professional advice because the information given in this thread does not appear to be particularly accurate.

Sherman it might be worth while reading the relevant legislation or purchasing a taxation summary and reading it thoroughly.

Iceman
 
BOXtheFOX said:
If a person is gifted a largish sum of money, say €50k+ from an elderly parent must that sum of money be disclosed to the revenue in the year it is received or can it form part of the overall tax return of the person when they receive their final inheritance on the death of the parent?
Click to expand...

Iceman732 said:
The OP speaks of inheriting a house etc... Therefore in computation he will not be able to deduct the €3,000
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The question from Boxthefox was what I was answering, not the OP, perhaps I should have quoted that poster for clarity in my response. The thread ( as frequently happens on AAM) seemed to expand from the OP's original question. Quite correctly S.69CATCA2003 does not apply to inheritances, but in the question Boxthefox posed, it would as it was a gift.

I endorse your comment re seeking appropriate professional advice. One should never rely solely on anonymous posts on an internet forum in making taxation decisions.
 
Graham_07 said:
The question from Boxthefox was what I was answering, not the OP, perhaps I should have quoted that poster for clarity in my response. The thread ( as frequently happens on AAM) seemed to expand from the OP's original question. Quite correctly S.69CATCA2003 does not apply to inheritances, but in the question Boxthefox posed, it would as it was a gift.

I endorse your comment re seeking appropriate professional advice. One should never rely solely on anonymous posts on an internet forum in making taxation decisions.
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Agreed! :)
 
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