Proceeds of inherited building that has to be sold

[Jo99]

Myself and my siblings have inherited the proceeds of a building that has to be sold form our Uncle.


This building is generating rental income. Tax returns are done annually on the rental income by the executor on behalf of the deceased since his death in 2007.



Last year the executor distributed €8000 to myself and my siblings from the rental income.


Do we need to declare this to the revenue and pay tax ?


(None of us have ever received monetary gifts from relatives.)

 

[Bronte]

Welcome to AAM. Your post is confusing as you mention tax returns by the executor before the money is handed over to you and the others. Maybe the accounts were done and costs deducted and the 8K is the profit which you must declare for tax purposes on your own accounts.

Someone who is dead does not have any income and no income tax return can be done for them that I am aware of.

You would need to know a lot more than just the 8K figure to do rental income tax returns.

 

[Padraigb]

An estate can have an income, and be taxed on it. It looks to me as if that is what is happening here.

Once the estate income has been taxed, anything remaining is an asset of the estate. The €8k can be regarded as a partial distribution. It should be returned for CAT, but that amount would attract no liability. When the property is sold, partial distributions and the final distribution will be rolled up together and it is possible that there will be CAT liability.