Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Gift of House, Taxes and fees

Options
  • 15-08-2016 5:19pm
    #1
    Dr. Fell
    Registered Users Posts: 52 ✭✭


    My father in law intends to transfer a house to my wife and I. The house was gifted to him 15 years ago by his aunt along with the family farm. He disposed of the farm some time ago. The house is not his primary residence but he lives nearby. It has been a family home since the 1800's. We rent at the moment and intend to renovate the property over the next few years, hopefully moving in by 2019. The value of the house would probably be less than €50,000. Would we be liable for Capital Gains? If so do i need the services of an accountant? Also, can we complete the transfer ourselves with witnesses and a Notary Public? Or should i bite the bullet and be prepared to spend a bunch of fees to save a bunch of headaches?
    Tagged:


Comments

  • Options
    #2
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Once she hasn't used it before your wife is entitled to recieve 280k from her father before it attracts any tax, you are both also entitled to a 3k (each) small gifts exemption per year.

    If it is really only valued at 50k you won't have any CAT due, capital gains tax is a different tax and not applicable here. Also you only need to make a return if the gift exceeds 80% of the applicable threashold (which it wouldn't in the case above). You would need to get the house professionally valued though to get the real value.


  • Options
    #3
    NewCorkLad
    Registered Users Posts: 957 ✭✭✭NewCorkLad


    As your father in law has disposed of a farm in the past I assume there might be some cash assets which might be transferred later on, so you might want to leave the €280,000 tax free entitlement untouched.

    It is possible for a dwelling to be passed tax free as long as it meets certain conditions, you can read up on it here:

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


  • Options
    #4
    December2012
    Registered Users Posts: 4,695 ✭✭✭December2012


    You can't do the Transfer yourselves.

    You should each get separate tax and legal advice


  • Options
    #5
    Marcusm
    Registered Users Posts: 10,322 ✭✭✭✭Marcusm


    Taliyah Long Swimmer wrote: »
    Once she hasn't used it before your wife is entitled to recieve 280k from her father before it attracts any tax, you are both also entitled to a 3k (each) small gifts exemption per year.

    If it is really only valued at 50k you won't have any CAT due, capital gains tax is a different tax and not applicable here. Also you only need to make a return if the gift exceeds 80% of the applicable threashold (which it wouldn't in the case above). You would need to get the house professionally valued though to get the real value.

    Capital gains tax might very well be on point for the father in law depending on how much base cost he has left from the earlier part disposals.


Advertisement