Selling house below market value

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60watt

Registered User
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Hi

Three siblings each inherit a 1/3 share in their parents home in 2021, market value €300,000. No outstanding mortgage on the house.
One year later in 2022 the market value of the house has increased to €360,000
Now sibling A wants to buy out the other two siblings. None of the siblings live in the house.
Lets say Sibling B agrees to sell his1/3 share (current market value €120,000) to Sibling A for €60,000
1 Will Sibling A be deemed as getting a gift of €60,000 from Sibling B and be liable for Gift tax ?
2 Will Sibling B face paying capital gains tax on €20,000 (i.e. the gain he could have made if he sold for the fair market value) ?
Is this what revenue call a "notional gain" ?

Thanks
 
60watt said:
Hi

Three siblings each inherit a 1/3 share in their parents home in 2021, market value €300,000. No outstanding mortgage on the house.
One year later in 2022 the market value of the house has increased to €360,000
Now sibling A wants to buy out the other two siblings. None of the siblings live in the house.
Lets say Sibling B agrees to sell his1/3 share (current market value €120,000) to Sibling A for €60,000
1 Will Sibling A be deemed as getting a gift of €60,000 from Sibling B and be liable for Gift tax ?
2 Will Sibling B face paying capital gains tax on €20,000 (i.e. the gain he could have made if he sold for the fair market value) ?
Is this what revenue call a "notional gain" ?

Thanks
Click to expand...
Get a little creative here. Especially if you all get along which to me seems to be the case. B sells to A for 120k but B pays A 60k and writes up a loan for the addtional 60k to be payed back over time.
 
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