Tax implications on recieving cash gift from Parent

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Patrick2008

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My Father would like to give €120,000 to his 3 daughters as a gift. €40k each. Can he just sign them a cheque or transfer the money into their account or does he have to use a Solicitor?
 
He can just give them the cash/cheque if there are no strings attached - no need for a solicitor. The daughters should keep a record of the gift and it may count against their CAT cut-off point when the father passes away. Gifts given before a certain date are excluded from CAT calculations (currently December 1991) and this date is expected/hoped to be changed over time.

The first €3,000 is excluded from the tax calculations.
 
If the cash gift is used as a down-payment on a mortgage or any other major item of expenditure, the parent will have to draw up a note stating that he has no interest in the property/item. Also, Revenue might be interested in the source of the gift to the daughters.
 
There should be no tax problem with the gift unless the reciever hace recieved prior gift higher that the class thresholds. If first gift recieved then no problem.

However if the father is selling some asset in order to get the €120K then this may give rise rto tax for him
 
My mother wishes to gift me her childhood home (not her main residence) which she inherited two years ago from her parents(my grandparents) now deceased. What are the tax implications if any for us? The house is valued €120,000 currently.
I would appreciate advice.
 
coast4 said:
My mother wishes to gift me her childhood home (not her main residence) which she inherited two years ago from her parents(my grandparents) now deceased. What are the tax implications if any for us? The house is valued €120,000 currently.
I would appreciate advice.
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Your mother may have a CGT liability on the difference between market value on the date she inherited and the €120k (if the value has increased, which seems unlikely). If you are under the threshold for parental gifts when you include the €120k, then you would not be liable for CAT. You would be using up €120k of your parental tax-free limit & need to allow for that in future gifts/inheritances.

See here for relevant thresholds.
 
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