Property Gift

[Aztec]

Hi, I would appreciate advice on the scenario below. I cant seem to get my head around the process and details on the revenue and Citizens information site.

I own two properties worth about 300,000 each. I want to gift one of these to my only Daughter. My daughter has recently moved back in with me and I would like to gift her this property and I want to eventually move into the other one which is currently getting some work done to it.

The gift threshold is about 245,000.

What are the requirements for me to gift her my current PPR without her having to pay the enormous (to her) 33% tax on it?

Does she need to stay in the property for a period of time? - or must I live with her for a period of time?

Margaret
Any help would be appreciated.

 

[Brendan Burgess]

The Revenue's CAT 10 leaflet explains it clearly

http://www.revenue.ie/en/tax/cat/leaflets/cat10.html

What are the requirements for me to gift her my current PPR without her having to pay the enormous (to her) 33% tax on it?

The recipient must have occupied the dwelling- house continuously as his/her only/main residence for a period of 3 years immediately prior to the date of the gift/inheritance.

Does she need to stay in the property for a period of time?

The recipient must continue... to occupy that dwelling- house as his/her only/main residence for a period of 6 years commencing on the date of the gift/inheritance.

must I live with her for a period of time?

This is not a requirement at all. You can live in the house or not live in the house. It doesn't matter.


While she will be exempt from CAT, if the house has gone up in value between the time you bought it and the time you gifted it, you will be liable for Capital Gains Tax at around 33% on the gain.

 

[Nige]

The period in which both of you are living in the house does not count towards the three year period needed prior to the gift. For the purposes of the dwelling house exemption, the three year period only starts when your daughter is living in the house without you.

 

[valery]

On the link Brendan posted, both of you could live in the house in the three year period, if you are over 65 or dependant on your daughter due to infirmity.