While that holds I would think if any capital gain tax would have to be paid. If she owned it I would think no CGT.The condition is that is her principal primary residence.
She doesn’t have to own it but does have to live there most of the time.
Indeed but any gift from parent eats into lifetime CAT allowance.If she owned it I would think no CGT.
We are in a similar position, buying a house, but intend for my son who is in college to move in to it. House in our name. I do not think he can get rent a room relief if he rents out a room. Did you get an answer as you have similar situation ?Thanks all, I assumed the property had to be in her name to avail of the rent-a-room scheme so that solves that issue - we’ll buy in our name
It’s answered conclusively at the start of the thread.I do not think he can get rent a room relief if he rents out a room. Did you get an answer as you have similar situation ?
If this is the answer from start of thread: "Buy the property in your own name. Your daughter can avail of up to €14,000 a year tax free under the rent-a-room relief. She just has to live there, not own it", I'm not sure if this is entirely correct and that is why I asked if a definite answer was sought and confirmed. In this case the daughter will receive income from something that she was neither gifted nor paid market rent on.It’s answered conclusively at the start of the thread.
Rest assured it is entirely correctYour daughter can avail of up to €14,000 a year tax free under the rent-a-room relief. She just has to live there, not own it",
In case anybody still doubts it.Rest assured it is entirely correct
4. Qualifying residence
4.1 Sole or main residence
The room or rooms must be in a residential premises situated in the State that is occupied by an individual as her or his sole or main residence during the particular tax year. An individual may live in more than one residence but can only avail of rent-a-room relief in respect of her or his sole or main residence. In general, an individual’s sole or main residence is that individual’s home for the greater part of the time and where friends and correspondents would expect to find him or her. The individual does not have to own the residence and it could, for example, be occupied as rented accommodation.
So the 14k p/a tax relief is outside of the CAT allowance and can be put into a savings scheme or somesuch etc for the daughter? Or am I misunderstanding?Indeed but any gift from parent eats into lifetime CAT allowance.
For many of the reasons outlined above it’s simpler if the parents buy it. A transfer can always be done at a future point.
The 14k income must be to the child, who is resident in the property for most of the year. They can claim rent a room relief,coven if they don't own the property.So the 14k p/a tax relief is outside of the CAT allowance and can be put into a savings scheme or somesuch etc for the daughter? Or am I misunderstanding?
I tend to agree. The Revenue guidance says :What I don't believe is as clear cut as others is if providing a 4 or 5 bedroom house to a child rent free is outside the scope of CAT.
The provision of the use of a house owned by a parent rent-free, to a child not more that25 years of age who is attending university, to help support and maintain the child while in university, is a normal and reasonable provision and is, accordingly, exempt from tax unde Section 82 CATCA 2003."
Or you take the additional rental income & use it to cover any costs you might have?This is what I am wondering. A two bed apartment for two children would be ok I assume, and if the two children decide to share to make additional income from the available space, is this reasonable?
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