Buying house for daughter

Ladyluck

New Member
Messages
1
Hi
My husband and I are in the fortunate position that we can afford to buy a house for our daughter. She has started a new job in Dublin so we would like to buy her a house/apartment there. The ones we are considering are around the 350k mark. If we buy the house for her, what does this mean for her in terms of tax? my understanding is that she has to pay tax on 40k, is this correct? If we structure this as a loan with 0% interest repayable to us, what tax implications does that have? Thanks.
 

john luc

Frequent Poster
Messages
404
Maybe rent it to her for €6K per year and then each of you give her an annual gift of €3K each year. That way she will not use up her CAT A allowance and maybe in the years ahead the mafia Taxperson will increase that CAT A allowance back to a reasonable rate.
 

Fergal19

Registered User
Messages
71
Maybe rent it to her for €6K per year and then each of you give her an annual gift of €3K each year. That way she will not use up her CAT A allowance and maybe in the years ahead the mafia Taxperson will increase that CAT A allowance back to a reasonable rate.
yeah but the parents will then have an investment asset subject to CGT and possible IT on the rent?

Maybe lend her the funds to buy the property and forgive the loan at a later date? Annual interest payments could be offset via the small gift allowance
 
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