My father is in a nursing home. Probably there for the rest of his days. I understand that his home might not be liable to property tax. What are the chances that if he claims exemption that his house is classed differently. In otherwords the nursing home becomes his main residence and his house becomes a secondary residence and subject to CGT when it is sold?
LPT: Father in Nursing Home - Will house be re classed?
- Thread starter Tintagel
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Provided your father's house will be left empty or only occupied, rent-free, to maintain the property, then it will still be treated as his PPR for CGT purposes (see the pdf document on section 604 here: [broken link removed]).
In any case, CGT will only be an issue if he decides to sell it.
In any case, CGT will only be an issue if he decides to sell it.
SoylentGreen
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I would be interested in an update on this. If a person is living in a nursing home for a few years and dies while in the nursing home. If his unoccupied property is put up for sale will CGT be an issue?
I would have thought that a nursing home was similar in ways to a hotel. You have a room plus bathroom. You share the common areas with other people including the lounge areas. You have no access to a kitchen so cannot prepare your own meals.
This could not be classed as a home in the true sense of the word.
There is also the possibility that a person might be asked to leave a nursing home.
I remember an individual was able to claim non resident status for his house in Dublin because it had no kitchen.
This could not be classed as a home in the true sense of the word.
There is also the possibility that a person might be asked to leave a nursing home.
I remember an individual was able to claim non resident status for his house in Dublin because it had no kitchen.
If you have someone occupying, rent-free, to maintain the property, is the property still liability to the LPT where the sole owner is in a nursing home and previously they were the only occupant of the house.
There is no CGT on death so it does not matter.
If sold while still in the nursing home, www.revenue.ie/en/about/foi/s16/income-tax...tax.../19-07-03.pdf
In addition to the above, any period of absence during which both of the following circumstances apply:
(a) the claimant (who would normally live alone) was receiving care in a hospital, nursing home or convalescent home, or was resident in a retirement home on a fee paying basis; and
(b) the private residence remained unoccupied,
should be treated as a period of occupation and, provided that all the other conditions of Section 604 are met, full principal private residence relief should be granted.
Where the residence was occupied rent free, during a period of absence as in 1(a) above, by a relative of the claimant, for the purpose of security or maintaining it in a habitable condition, the claim should be admitted.
Don't think its liable, http://www.revenue.ie/en/tax/lpt/exemptions.html
A property previously occupied by a person as his or her sole or main residence that has been vacated by the person for 12 months or more due to long term mental or physical infirmity. An exemption may also be obtained where the period is less than 12 months, if a doctor is satisfied that the person is unlikely at any stage to return to the property. In both cases, the exemption only applies where the property is not occupied by any other person.
Don't think a caretaker would invalidate this exemption.