Will I have to pay inheritance tax?

[Rupert1]

My Mam died a few months ago. She left me her a house which i lived in with her.

Will I have to pay inheritance tax and if so, how much? The valuation of the house is roughly 900,000 Euros.

 

[mf1]

There is a relief called Dwelling House relief

Check this out and see if it applies to you.

http://www.revenue.ie/en/tax/cat/leaflets/cat10.html

mf

 

[beffers]

My sympathies for your loss.

How long did you live in the house with your mam, prior to her passing away? Are your intentions to keep on living in the house, or sell it?

You won't have to pay any inheritance tax if you meet the criteria listed in the link above.

If you sell it, you will have to pay capital gains tax on the sale proceeds that are above the exemption ceiling. The exemption ceiling is in the low 400,000's. By that, you can inheirit a property, sell it, and you are not liable to pay capital gains tax on the first 400,000 of the sale proceeds. You will have to pay it on the remaining 500,000 if the house sells for what you think it is worth. The rate is 20% or 25%. I found myself in the same situation last year. Sorry, I forget the specific numbers re tax rate and the exemption ceiling, so I am ball parking it for you.

There is no getting around the tax. When you sell it, the solicitor will deduct what the capital gains tax is and forward it to the Revenue, before he will hand you over the rest of the sale proceeds.

 

[Rupert1]

My sympathies for your loss.

How long did you live in the house with your mam, prior to her passing away? Are your intentions to keep on living in the house, or sell it?

You won't have to pay any inheritance tax if you meet the criteria listed in the link above.

If you sell it, you will have to pay capital gains tax on the sale proceeds that are above the exemption ceiling. The exemption ceiling is in the low 400,000's. By that, you can inheirit a property, sell it, and you are not liable to pay capital gains tax on the first 400,000 of the sale proceeds. You will have to pay it on the remaining 500,000 if the house sells for what you think it is worth. The rate is 20% or 25%. I found myself in the same situation last year. Sorry, I forget the specific numbers re tax rate and the exemption ceiling, so I am ball parking it for you.

There is no getting around the tax. When you sell it, the solicitor will deduct what the capital gains tax is and forward it to the Revenue, before he will hand you over the rest of the sale proceeds.

I have lived in the house with my mam for around 15 years. I am not going to sell it. I will never sell it! There's a good bit of land too so I would never sell it.

 

[Bronte]

Rupert you are contradicting yourself on different posts.

 

[Rupert1]

There is a relief called Dwelling House relief

Check this out and see if it applies to you.

http://www.revenue.ie/en/tax/cat/leaflets/cat10.html

mf

That does apply to me. Does that mean I won't have to pay inheritance tax?

 

[mercman]

That does apply to me. Does that mean I won't have to pay inheritance tax?

Sorry for your loss.

Whilst most posters offer the best opinion they might offer, for this kind of large amounts, might I suggest that the services of an accountant is used for the purpose of clarity and correct ways to deal with such a legacy.