Tinwhistler
Registered User
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- 7
Thanks MF for your reply, much appreciated. He inherited it in 2009, would it have been valued at that stage?Your father can gift you the property. You may be exempt from Capital Acquisitions Tax - Gift Tax.
Your father will have a CGT liability- to work that out, you'd have to establish when he acquired it and at what value/cost.
In the overall scheme of things, it may be worth while taking the tax hit to achieve your aim.
I suggest you take tax advice to make more sense of the numbers.
mf
OK thank you. If he did decide to gift it to me, would I be allowed to sell it immediately - I think I've read somewhere online about having to keep it for another 2 years after acquiring it or I'd be liable for tax? Is that right or am I misunderstanding somethingYes. It had to be valued for probate.
MF
Hi noproblem. Thanks for your post and questions. He has told me it will be mine, he has made a will but I know he would have been happier had I settled in the house for life but unfortunately its too far from Dublin where my wife and I are both born and grew up in. I have two younger siblings, one in full time care due to profound disability, the other sibling wants to inherit the family home in Dublin. My mother wants us helped now so we can be happy, live where we want to be without paying potentially €2k per month in rent indefinitely so that we can be in a position to help care for my disabled sibling on weekends in the future as he goes home every 2/3 weeks for 2 nightsAre you sure your father wants you to have the house and to do with it what you want? Are there more children in the family? Has he made a will? What's the situation in regard to your mother?
Thanks, it does make more sense but ultimately it will be his decision.I think you're thinking of Dwelling House Relief- which won't apply.
Technically, there is no reason why you can't acquire the property and sell it again.
Does it not make more sense for your father to sell? It's just one transaction then and he gifts you the funds?
mf
Thanks Vanessa for your reply.Cost of repairs can be used against the CGT. 2009 was just at the end of the boom so its possible the valuation then was on the high side.
There are a few factors here that might benefit both parties. I' d recommend a consultation with an accountant.
I think mf's idea of him selling and then gifting you the funds would be the best approach. It would mean that the figure received will be subtracted from any future inheritance e.g. if you got 250000 and if in the future when your Dad dies you will be liable for inheritance tax on anything above the difference between 250000 and the father/son inheritance threshold
If your father is liable for CGT and this is stopping him from selling you could always make an arrangement to pay him back using the gift tax provisions.
So 3000 a year from you to Dad and 3000 a year from you to Mam would eat into the CGT quickly, if your wife did the same all the better i.e. 12000 paid back annually
All supposing you would have the funds but certainly worth teasing out with an accountant
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