Which tax do I pay, if any?

PANDDDKP

If my father gives me a house (no mortgage on it) and he's still alive, do I pay tax on it?

It's worth about 100k. Which tax do I pay? Inheritance, CGT?
Thanks

barneystinson

PANDDDKP wrote: »

If my father gives me our 2nd home (no mortgage on it) and he's still alive, do I pay tax on it?

It's worth about 100k. Which tax do I pay? Inheritance, CGT?
Thanks

Your question makes no sense."Our" 2nd home suggests you already own it?! Do you mean he's going to give you "a" house worth 100k, which he currently owns mortgage free, and it would become your 2nd house?

PANDDDKP

It's my parents house. I don't own a house.

what recession?

PANDDDKP wrote: »

If my father gives me a house (no mortgage on it) and he's still alive, do I pay tax on it?

It's worth about 100k. Which tax do I pay? Inheritance, CGT?
Thanks

The relevant tax is Capital Acquisitions Tax (CAT). If you have never received a gift or inheritance from your parents before, then the gift of the house will be tax free as it is under the €280,000 lifetime threshold.

Pawwed Rig

I would be trying to get the dwelling house exemption rather than use your group A threshold which might be needed later.

PANDDDKP

Thanks guys

Nono Toure

Sorry to hijack the thread but I'm in a similar(ish) position.

My parents own 2 houses. One of them is empty and is mortgage free. It's worth about 150k.

I'm going to be looking for a mortgage next year to build a new house. Because I'm self employed the banks might not want to loan to me.

My parents said they would sign over their empty house to me to use as collateral for the mortgage I'm going to look for.
I won't be living in the house my parents give to me as I'm 100 miles away from them unfortunately.

Would them signing their 2nd house to me hinder or help me seeking a mortgage for a new build does anyone know? I know I need to seek professional advise on this, and I will, just wondering if anyone here can give me a bit of info first. Thanks

JoeSoaped

To the OP, if you have resided in this house for the past three years and have no interest in any other property you will be eligible for dwelling house relief, if you sell within 6 years there will be a clawback, you will pay stamp duty of 1% on the market value of the property.
I'd imagine having 150k in extra assets would help in your mortgage application, you should, of course, seek professional advice.

Timbo1987

If you're parents are still alive then they will have to pay CGT on the disposal also. It will be calculated on the market value as you are connected parties. With regards to the receiver, they can try to get dwelling house relief but unless your parents are over 65 or medically unwell I doubt you will get it. You can use your class a threshold though of 280k as said earlier.

JoeSoaped

That condition(age or incapacity) only comes into play if both are occupying the property and it is the Parents PPR, which would mean they would have no CGT bill to pay.

Pawwed Rig

Timbo1987 wrote: »

If you're parents are still alive then they will have to pay CGT on the disposal also. It will be calculated on the market value as you are connected parties. With regards to the receiver, they can try to get dwelling house relief but unless your parents are over 65 or medically unwell I doubt you will get it. You can use your class a threshold though of 280k as said earlier.

This is not correct in the OPs situation

Timbo1987

JoeSoaped wrote: »

That condition(age or incapacity) only comes into play if both are occupying the property and it is the Parents PPR, which would mean they would have no CGT bill to pay.

OP never said it was the parents PPR or specified who lived where so we cannot be sure of either.

Get professional advice OP.

Pawwed Rig

Timbo1987 wrote: »

OP never said it was the parents PPR or specified who lived where so we cannot be sure of either.

Get professional advice OP.

He did but seems to have subsequently edited post causing confusion

Timbo1987

Pawwed Rig wrote: »

He did but seems to have subsequently edited post causing confusion

Fair enough. That makes more sense