Gifted house to daughter: Tax Liability?

[Hoolie]

We gifted our first house to my daughter about 3 years ago. The house was valued at €350,000 at the time it was signed over to her. She had been living in the house for about 10 years before it was signed over to her.The house was bought for around IRPunts10,000 around 1974. We have been living in our current primary residence since she started living there. We are wondering if there is any tax liability here to us? Thanks!

 

[Farma1]

When did you purchase the property you are in now?

Im assuming the house you have gifted your daughter was your primary residence from 1974 until 2011.

I think you owe the CGT on it for the 10 years that it wasn't your primary residence but it hadn't been signed over to her. ie the capital gain would be (350k - the value in 2011)

 

[T McGibney]

When did you purchase the property you are in now?

Im assuming the house you have gifted your daughter was your primary residence from 1974 until 2011.

I think you owe the CGT on it for the 10 years that it wasn't your primary residence but it hadn't been signed over to her. ie the capital gain would be (350k - the value in 2011)

Incorrect.
The Capital Gain is

market value at date of transfer
minus
indexed 1974 value
minus
applicable costs at both ends
discounted for
applicable PPR exemption

 

[Hoolie]

When did you purchase the property you are in now?

Im assuming the house you have gifted your daughter was your primary residence from 1974 until 2011.

I think you owe the CGT on it for the 10 years that it wasn't your primary residence but it hadn't been signed over to her. ie the capital gain would be (350k - the value in 2011)

2011
Yes

 

[Hoolie]

Incorrect.
The Capital Gain is

market value at date of transfer
minus
indexed 1974 value
minus
applicable costs at both ends
discounted for
applicable PPR exemption

So there's definately a tax liability, I presume interest/penalties on top of the liability?

 

[T McGibney]

So there's definately a tax liability, I presume interest/penalties on top of the liability?

Probably a late filing surcharge of 10% of the tax charge.
If you've a clean tax record and late filing was a genuine error, Revenue may agree to waive that if asked nicely.
Unless the tax bill is high and/or unless you fail to resolve it before Revenue come to you looking for it in which case you might be facing a higher penalty, interest is unlikely to be an issue.

 

[Hoolie]

Probably a late filing surcharge of 10% of the tax charge.
If you've a clean tax record and late filing was a genuine error, Revenue may agree to waive that if asked nicely.
Unless the tax bill is high and/or unless you fail to resolve it before Revenue come to you looking for it in which case you might be facing a higher penalty, interest is unlikely to be an issue.

Thank you!