Selling an old ruin - tax implications?

[coppeen]

Can anyone help me understand the tax implications of doing the following?

My father has a farm and is living on a house on the farm. My granparents house is also there and not lived in (practially a ruin). The intention was that I was getting my granparents house eventually but we just haven't got round to transferring it.

Now someone has contacted me with an offer to buy it - I have just bought my own house so this money would be really handy.

THE QUESTION IS: How do I minimise tax?? Should I get the old house transferred into my name or should I get my father to sell it and then give me the money - it will be about 150K?

Thanks

coppeen

 

[asdfg]

From your point of view it would be better if your father sold the property and gave you the money. No CAT as within treshold. Any future inheritance from your parents would have to take this cash into account.
Your father would be liable to CGT.

AFAIA you have to get the house valued at April 74 any valuer should be able to do this. You then apply the multplier rates from then till 2002, deduct expenses (selling, getting land valued etc.) deduct 1,270 and pay 20% CGT on the balance.
Link to [broken link removed]

 

[ubiquitous]

From your point of view it would be better if your father sold the property and gave you the money. No CAT as within treshold. Any future inheritance from your parents would have to take this cash into account.
Your father would be liable to CGT.

AFAIA you have to get the house valued at April 74 any valuer should be able to do this. You then apply the multplier rates from then till 2002, deduct expenses (selling, getting land valued etc.) deduct 1,270 and pay 20% CGT on the balance.
Link to [broken link removed]

This is very simplistic and dangerous advice. From the limited information given by the OP, there is no guarantee that "it would be better if your father sold the property and gave you the money". Neither is there is any evidence from the facts given by the OP that the April 1974 value of the property has any relevance, nor that indexation multipliers will automatically be available, nor indeed that the entire gain will be subject to CGT.

Coppeen, you need to invest a tiny fraction of the €150k in some proper professional tax advice. You are taking huge risks if you proceed with any transactions in relation to this property without first doing so.

 

[liteweight]

I agree. This situation looks much more complicated to me.

On the face of it, it would seem better to allow your father to sell. He is then able to gift you 478K without any tax liability (all gifts from him to total this amount). You can make a private arrangement to pay the capital gains tax. If the property is gifted to you then I think you may have a Stamp Duty (reduced) liability and also when you sell, you would have a CGT liability as it's not your only property.

I'd definitely check it all out thoroughly.