I have a situation that I need to figure out the best way forward
We will be visiting a professional financial advisor but I just wanted to get some guidance to try to steer me right
I took out a mortgage on a house in 1998 the mortgage is now fully paid just a couple of years ago
At the time my parents accountant advised them on a ‘tax strategy’ as they owned a small business at the time which included their primary private residence
So I lived in the house for about a month but after that my parents moved into the house and I moved out. they paid rent to me which covered the mortgage cost. I submitted a tax returns et cetera each year and everything is above board in that regard. Parents also covered the cost of any tax bills each year
Now my parents business has long been sold and they have lived in the house for the past 20 odd years but the property is obviously still in my name. They live there rent free now and I have a primary residence with my wife and kids
I am wondering what the best thing to do is. If I were to sell the house when they die then obviously I’ll pay capital gains tax the sale of the house
However I am trying to figure out if I were to gift the house to them now and they would put it in their will to return it to me on their passing would that be more beneficial and I would have to pay less tax?
Another caveat is – myself and my wife I looking to trade up our principal residence and possibly move to a larger house and we are about to begin the mortgage application process. The banks will most likely ask to see my details of properties et cetera and I have this property worth approximately 330,000 Euro but it is not getting any income at the moment as my parents are living there rent-free since the mortgage has been paid off a few years ago
We also have another apartment in my wife’s name that we rent out. It’s in negative equity but the value is now above the remaining mortgage so we may sell that to partially fund our planned house move
Sorry for rambling as it’s first post so be kind!
We will be visiting a professional financial advisor but I just wanted to get some guidance to try to steer me right
I took out a mortgage on a house in 1998 the mortgage is now fully paid just a couple of years ago
At the time my parents accountant advised them on a ‘tax strategy’ as they owned a small business at the time which included their primary private residence
So I lived in the house for about a month but after that my parents moved into the house and I moved out. they paid rent to me which covered the mortgage cost. I submitted a tax returns et cetera each year and everything is above board in that regard. Parents also covered the cost of any tax bills each year
Now my parents business has long been sold and they have lived in the house for the past 20 odd years but the property is obviously still in my name. They live there rent free now and I have a primary residence with my wife and kids
I am wondering what the best thing to do is. If I were to sell the house when they die then obviously I’ll pay capital gains tax the sale of the house
However I am trying to figure out if I were to gift the house to them now and they would put it in their will to return it to me on their passing would that be more beneficial and I would have to pay less tax?
Another caveat is – myself and my wife I looking to trade up our principal residence and possibly move to a larger house and we are about to begin the mortgage application process. The banks will most likely ask to see my details of properties et cetera and I have this property worth approximately 330,000 Euro but it is not getting any income at the moment as my parents are living there rent-free since the mortgage has been paid off a few years ago
We also have another apartment in my wife’s name that we rent out. It’s in negative equity but the value is now above the remaining mortgage so we may sell that to partially fund our planned house move
Sorry for rambling as it’s first post so be kind!