Tax Implications buying parents house under market value

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Andrea92

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I am recently mortgaged approved with my husband for €450k. I have 1 sibling who lives abroad.
We were hoping to buy near my parents but in the time it has taken to get our deposit saved we have been somewhat priced out if the area for a decent family sized property. We have a child and my parents have come up with the idea that in order for us to remain close by (and help them in older age) they will downsize and sell us the family home. My sibling would then inherit their new smaller property (and is in total agreement with this as they will never return here to live & like the idea of my parents being close to me and looked after).

The property value is €720k (and is fully paid off) so we would be paying €270k under market value. From what I am researching I am starting to feel defeated in thinking my parents cannot gift me the balance (they would not have the cash value) as it would be seen as a gift to both me and my husband? Our mortgage would need to be in both of our names but my husband would have no problem signing something to say my share of the house is larger if it was necessary. Is there anyway around this at all?
 
The idea of doing the looking after can become problematic and you may not be able manage it in years down the road.
 
On the face of it, your parents would be giving a gift of 135k each to you their daughter and your husband.

Daughter receives 135k = typically no CAT due, unless you received previous gifts
Husband receives 135k from in-laws = typically CAT due


I wonder are there other ways to do this?
 
Pinoy adventure said:
The idea of doing the looking after can become problematic and you may not be able manage it in years down the road.
Click to expand...
Thanks for the reply. This part honestly doesn't worry me however. I am very close to my parents and regardless if this works out I intend to be very involved with them and help them in their older age however I can. My father has a good pension also so they expect to thankfully be comfortable enough in that regard.
 
Protocol said:
On the face of it, your parents would be giving a gift of 135k each to you their daughter and your husband.

Daughter receives 135k = typically no CAT due, unless you received previous gifts
Husband receives 135k from in-laws = typically CAT due


I wonder are there other ways to do this?
Click to expand...
Thanks for the reply.
I have received one other gift for wedding from my parents of 10k.

Our solicitor can not give us an answer and I have contacted a few accountants who have not come back to me..
 
Your parents could sell their house and buy a new house.
Then they could give you a gift of €270k.
You could buy the house you want.

If you really want to buy your parents' house, you might have to find someone to buy it from them and sell it on to you.

Brendan
 
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