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Question about selling house

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  • 15-08-2011 1:41pm
    #1
    INEEDANID
    Closed Accounts Posts: 381 ✭✭


    My grandparents wish to sell their house.

    I would like to buy it from them as I would like to live there in the future.

    What would the implications be of me buying the house as in what taxes would have to be paid by my grandparents and what would I have to do?

    Could they just transfer the deeds into my name after I pay them the cash?


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    #2
    PhoenixParker
    Registered Users Posts: 2,677 ✭✭✭PhoenixParker


    INEEDANID wrote: »
    My grandparents wish to sell their house.

    I would like to buy it from them as I would like to live there in the future.

    What would the implications be of me buying the house as in what taxes would have to be paid by my grandparents and what would I have to do?

    Could they just transfer the deeds into my name after I pay them the cash?

    Just go to a solicitor.
    You're going to need one anyway to transfer the deeds and they'll set the whole thing up.


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    #3
    INEEDANID
    Closed Accounts Posts: 381 ✭✭INEEDANID


    Yes i'll do that was just trying to get idea of what would happen.

    Just curious about the percentage of tax my grandparents would have to pay on the selling price, plus would they be able to set the selling price for whatever they wanted.


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    #4
    Raskolnikov
    Registered Users Posts: 10,148 ✭✭✭✭Raskolnikov


    Your grandparents wouldn't pay anything on the disposal of their house, provided it has been their Principal Private Residence from the time they originally purchased it.

    If they are selling the property to you for below market value, you should also know that stamp duty is assessed on the market value of the property and not the purchase price. It might be an idea to get a valuer in to assess the value of the property prior to the transaction.


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    #5
    Raskolnikov
    Registered Users Posts: 10,148 ✭✭✭✭Raskolnikov


    PhoenixParker wrote: »
    Just go to a solicitor.
    You're going to need one anyway to transfer the deeds and they'll set the whole thing up.
    A solicitor is unlikely to give advice on personal taxation.


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    #6
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    INEEDANID wrote: »
    Yes i'll do that was just trying to get idea of what would happen.

    Just curious about the percentage of tax my grandparents would have to pay on the selling price, plus would they be able to set the selling price for whatever they wanted.


    If it has been their own home since they bought it, they don't have to pay any tax.


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    #7
    INEEDANID
    Closed Accounts Posts: 381 ✭✭INEEDANID


    If I were to inherit the property I would have to pay about 25% tax from my understanding but if I bought the house I would only have to pay the stamp duty. Is that correct?


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    #8
    Dades
    Moderators, Society & Culture Moderators Posts: 25,558 Mod ✭✭✭✭Dades


    INEEDANID wrote: »
    If I were to inherit the property I would have to pay about 25% tax from my understanding but if I bought the house I would only have to pay the stamp duty. Is that correct?
    Well, Stamp Duty and the market value of the house.


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    #9
    INEEDANID
    Closed Accounts Posts: 381 ✭✭INEEDANID


    Dades wrote: »
    Well, Stamp Duty and the market value of the house.

    Yes that's what I meant Stamp duty and the Market Value.

    The stamp duty would be far less than I would have the pay the Government if I inherited the house though.

    Stamp duty seems to be at 1% for residential properties less than €1,000,000 where as inheritance tax would be at 25% of value.

    I would prefer to pay my grandparents for the house anyway and pay the Government the stamp duty rather than pay the 25% inheritance tax.


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    #10
    ABEasy
    Registered Users Posts: 566 ✭✭✭ABEasy


    INEEDANID wrote: »

    I would prefer to pay my grandparents for the house anyway and pay the Government the stamp duty rather than pay the 25% inheritance tax.

    Think u are mixing up your taxes. You will pay stamp duty on the transfer at 1% if you purchase or inherit it (at the market value at date of transfer).

    CAT is 25%. CAT is only due on gifts or inheritances, in this case if you pay less than the market value or if you inherit the property (in which case you will pay nothing) the value minus what you pay is liable to CAT. However you have an allowance that you can offset against the gain prior to calculating CAT see www.revenue.ie for details.

    In other words op you pay stamp duty either way and CAT depends on structure of transfer.


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