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I am hoping someone will be able to answer my questions.
My husband as I would like to build a house on land owned by my husband. The bank will not give us a mortgage as I currently have a mortage on a house that is in negative equity. I bought this house before we got married, the rent pays for the mortgage. My husband does not earn enough on his own to secure enough of a mortgage to build the house, we would need our joint income to be considered.
My parents and brother have offered to give us an interest free loan and this combined with our own savings would be sufficient to build the house. Can my parents and sister simply give me the money as a loan and we make monthly replayments to them? The loan should be fully paid for in 10 years.
I am aware that my parents can gift me 250K, without me having to pay any CAT, this is a lifetime threshold and the money is a loan not a gift. We would be making monthly repayments to them over 10 years. We would prefer not to go down this route as this would exclude me from getting tax exemptions on any inheritance in years to come.
The amount of money my sister wants to loan us is more than the gift threshold of 33,500. She wants to loan us the money interest free but would the revenue insist we pay her back interest and at what rate would this be calculated?
If we did pay interest to my parents, would they have to pay tax on this interest? Could my parents gift me back the amount paid in interest and would they still be taxed on it prior to paying it back?
My parents have raised this money from selling property a good few years ago, all is above board and all taxes, CGT etc has been paid in full to the revenue. If my parents lodged a large sum of money into my bank account would this alert the revenue?
My husband as I would like to build a house on land owned by my husband. The bank will not give us a mortgage as I currently have a mortage on a house that is in negative equity. I bought this house before we got married, the rent pays for the mortgage. My husband does not earn enough on his own to secure enough of a mortgage to build the house, we would need our joint income to be considered.
My parents and brother have offered to give us an interest free loan and this combined with our own savings would be sufficient to build the house. Can my parents and sister simply give me the money as a loan and we make monthly replayments to them? The loan should be fully paid for in 10 years.
I am aware that my parents can gift me 250K, without me having to pay any CAT, this is a lifetime threshold and the money is a loan not a gift. We would be making monthly repayments to them over 10 years. We would prefer not to go down this route as this would exclude me from getting tax exemptions on any inheritance in years to come.
The amount of money my sister wants to loan us is more than the gift threshold of 33,500. She wants to loan us the money interest free but would the revenue insist we pay her back interest and at what rate would this be calculated?
If we did pay interest to my parents, would they have to pay tax on this interest? Could my parents gift me back the amount paid in interest and would they still be taxed on it prior to paying it back?
My parents have raised this money from selling property a good few years ago, all is above board and all taxes, CGT etc has been paid in full to the revenue. If my parents lodged a large sum of money into my bank account would this alert the revenue?
