Tax liabiilty on amended title

Darraghd

Registered User
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3
Hi

A number of years ago I bought a house, which is my family home, with my father in law (FIL) on the mortgage and on the title. This was my FIL parents property which was willed to him and siblings. In effect all parties were paid with proceeds of mortgage. My wife wasn't placed on the loan or title as at the time she had another property.
The bank is now agreeable to remove my FIL from loan and title by way of an admin change....not a new app. .
My only question is does that leave me with any tax liability as now the property is solely mine ?
 
This is an interesting point, it seems as your FIL is removed leaving you as sole owner that he is gifting you his 50% beneficial interest at 50% today's valuation less his 50% share of the mortgage, on that basis a liability would be there in terms of capital acquisitions tax, he could gift you €3k annually if there was a paper trail showing that.
 
Darragh

Could he gift it to your wife instead?

She would have a much higher Gift Tax exemption.

I don't think it applies to children in law?

Brendan
 
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