Free use of property

A

Agreed

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Myself and my wife are living in my parents property for the past ten years. For the first 4 years we paid a rent of 500 p/m and then due to some financial difficulties on my part I was told by my parents not to worry about paying rent anymore.
What are my options in regard to eroding my tax free threshold due to free use of property. I would imagine market value would be in the region of 2000. I'm becoming concerned that I will have no tax free threshold left when it comes time to inherit the property and will have to sell and move my family to pay the tax bill.
I understand we can use the small gift exemption so that's 12000 would it be possible to consider my 2 children's small gift exemption also to avoid tax implications.
Any advice on this much appreciated.
 
I don't think you can have the children paying the rent!

You can receive € 3,000 per year from both parents = € 6,000
Your wife can receive € 3,000 per year from both parents = € 6,000
So € 12,000 per year, which leaves a gift of € 12,000 per year using up some of the € 335,000 lifetime allowance
 
jpd said:
I don't think you can have the children paying the rent!

You can receive € 3,000 per year from both parents = € 6,000
Your wife can receive € 3,000 per year from both parents = € 6,000
So € 12,000 per year, which leaves a gift of € 12,000 per year using up some of the € 335,000 lifetime allowance
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Fair enough. Can other costs incurred by me regarding repairs and such be deducted from market rent figure? I saw someone suggesting that it is normal practice to reduce market rent figure by 30 - 40% due to maintenance costs incurred that would not be in a normal tenancy?Also I reimburse for LPT and insurance.
 
I think between the Small Gift Exemption, the caretaker discount for you looking after what would otherwise be an empty property, and the two grandchildren, Revenue wouldn’t be all that interested in the arrangement.

If grandparents bring their children and grandchildren on an expensive holiday, the Taxes Act brings that into scope. In reality, nobody cares.
 
There are about 30,000 households which - according to Census returns - are occupying someone else’s dwelling rent free.

It’s remarkably common.
 
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