CGT query on family home

[Rio]

Hi
My mother passed away some years ago. I have one sister and one brother. My mother left the house to my sister. She has not lived there but was renting it. She has recently decided to sell the house and split the money 3 ways as she has a long term mental illness and does not see the need to keep it.

I am really unsure of the tax implications of this. Any advice you could provide would be great.

Rio

 

[Vanilla]

You will have a potential CAT issue depending on the amount you are being gifted by your sister. Your sister will have a potential CGT issue if there is a 'profit' between the sale price and the value of the house when she inherited from your mother. If you post some figures, you may recieve further detailed advice.

 

[Rio]

Thanks Vanilla
The value of the house is now c. 300k. I have since been informed that the house was in my sisters name for a long time prior to my mother passing away so she may not have to pay CGT.

Do I avoid this tax if the gift is paid in installments over years? Are you allowed to receive a certain amount per year?

Any advice would be appreciated.

 

[Vanilla]

Leaving aside the CGT issue which presumably your sister will take advice on, if the house sells for 300,000, you will therefore be gifted approximately 100k from your sister. Obviously costs and expenses of the sale will result in a slightly smaller net figure, but just as an example, take it that the figure is 100K. You are entitled to take only approx €47,815 free of tax from your sister ( assuming no prior gifts from another source or indeed from this sister). The balance is taxable at 20%. The first €3000 taken in any year is free of tax, therefore you could take the full 47,815 first and then a further 3K per year free of tax.