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Favourite Nephew

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  • 30-03-2011 4:35pm
    #1
    Sally Floyd
    Registered Users Posts: 27 ✭


    About 10 years ago, my aunt (who has no children) gave me a site to build a house. We got it valued on the 'cheap' side (about 50k) to avoid gift tax. She now wants to give me another site but needs to keep the valuation down to avoid the gift tax again. What is the threshold to avoid tax? I think I am what the revenue call a 'favourite nephew'! I never farmed this land on a full-time basis.


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    #2
    Clive
    Registered Users Posts: 1,799 ✭✭✭Clive


    The current threshold is 33,208 over your lifetime, so anything over 3000 per annum would now be liable for gift tax.


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    #3
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    Best get advice from your solicitor.


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    #4
    The Rooster
    Registered Users Posts: 4,512 ✭✭✭The Rooster


    Value of site less €33,208 less €3,000 is the taxable amount. Tax rate is 25%.

    You will also be liable to stamp duty. Rate depends on the value. If the value is between €40k and €70k the rate is 4%. But because its a transfer between related parties, only half the stamp duty would apply in your case.


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    #5
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    You have some nerve OP. You come on here openly admitting to wanting to undervalue a site to avoid tax.

    All I will say is I hope you come unstuck.


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    #6
    djmcr
    Closed Accounts Posts: 237 ✭✭djmcr


    D3PO wrote: »
    You have some nerve OP. You come on here openly admitting to wanting to undervalue a site to avoid tax.

    All I will say is I hope you come unstuck.

    This seems to be the Irish way


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    #7
    who what when
    Registered Users Posts: 822 ✭✭✭who what when


    D3PO wrote: »
    You have some nerve OP. You come on here openly admitting to wanting to undervalue a site to avoid tax.

    All I will say is I hope you come unstuck.


    Sites these days (and property in general) is extremely hard to value. Dont see the problem myself with what youre trying to do. Cant see why anyone would wish you a bad turn because of it!


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    #8
    mrmitty
    Registered Users Posts: 80 ✭✭mrmitty


    D3PO wrote: »
    You have some nerve OP. You come on here openly admitting to wanting to undervalue a site to avoid tax.

    All I will say is I hope you come unstuck.

    There are a couple of ways of valuing property.
    One way is the economic value method. If this method is used and the land being valued is agricultural land, then the true value might be somewhere in the region of E1000.00 / acre.


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    #9
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    Sally Floyd wrote: »
    She now wants to give me another site but needs to keep the valuation down to avoid the gift tax again.
    She sounds like she wants to commit fraud, and have you as the "fall guy" should anything go wrong. I'd be careful with this one, because if it blows up in your face, you'll be the one in hot water with the authorities.


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