Trying to figure this one out after seeing the post below:
If a parent owns a investment property, and allows their child in full time education and <25 years to live rent free, CAT is not due by the child under the below until they graduate/turn 26:
revenue.ie
The property is then genuinely the child's PPR, so can the child then claim rent a room relief if they rent a room to a stranger and keep that rent below the applicable 14k? Is there a tax implication for the owner in that notional market rent from their child is then taxable/PRSIable etc?
Rental income would be retained by the child to cover their living and all education expenses eg registration fees, books etc.
Assuming in the above scenario the property is a two bed apartment, would this cause an issue as it would be considered too generous for a parent to de facto pay rent for a two bed apartment for a student?
What elements am I missing? Thanks!
Changing PPR legitimately for tax purposes
Myself, my spouse and some of our children live in our present ppr in the midlands. Our full time jobs are there. We also have a property in another county where 1 of our children (student) lives and where I have a second part time job. From September, a second of our children (student) is...
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If a parent owns a investment property, and allows their child in full time education and <25 years to live rent free, CAT is not due by the child under the below until they graduate/turn 26:
Exemption for support, maintenance and education payments
Income or gains that are exempt from CAT
The property is then genuinely the child's PPR, so can the child then claim rent a room relief if they rent a room to a stranger and keep that rent below the applicable 14k? Is there a tax implication for the owner in that notional market rent from their child is then taxable/PRSIable etc?
Rental income would be retained by the child to cover their living and all education expenses eg registration fees, books etc.
Assuming in the above scenario the property is a two bed apartment, would this cause an issue as it would be considered too generous for a parent to de facto pay rent for a two bed apartment for a student?
What elements am I missing? Thanks!