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Gift from parent towards a house - taxed?

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  • 14-11-2018 9:41pm
    #1
    mkdon
    Registered Users Posts: 419 ✭✭


    quick question

    would i be taxed if i got a gift from a parent into my bank account that would go towards a house?

    could i say i got a loan instead to avoid tax or does it even matter

    its over 320k of a gift to get taxed right

    mine nothing like that unfortunately a small fraction

    any help appreciated


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    #2
    LirW
    Registered Users Posts: 4,825 ✭✭✭LirW


    Short answer: No.

    Long answer: no, unless you've already exceeded the tax free threshold on gifts. Your parents can each gift you 3k a year tax free on top of the lifetime threshold.
    They might consider getting you an official cert from a solicitor or accountant that they gave you the money as a gift because banks will ask where the money came from.


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    #3
    DubCount
    Registered Users Posts: 1,089 ✭✭✭DubCount


    I think Revenue have determined that a parent giving money towards a house/Deposit is subject to Capital Acquisitions Tax (Gift tax). There is a lifetime limit of 320k covering all gifts/inheritances from that parent. So it is taxable, but you wont pay tax unless or until the total gifts/inheritances reach 320k.


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    #4
    keane2097
    Registered Users Posts: 17,771 ✭✭✭✭keane2097


    Also worth noting that each parent can give you a tax free gift of €3k each year.


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    #5
    mkdon
    Registered Users Posts: 419 ✭✭mkdon


    what about an aunt or uncle??? is their limit 3k also does anyone know?


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    #6
    keane2097
    Registered Users Posts: 17,771 ✭✭✭✭keane2097


    mkdon wrote: »
    what about an aunt or uncle??? is their limit 3k also does anyone know?

    €3k each per year as well, ie in addition. So mom dad aunt and uncle can give 12k tax free between them.

    By the way if you plan on buying with a partner they can all make a similar tax free donation to the partner effectively doubling the amount you can get if you do it properly.


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    #7
    mkdon
    Registered Users Posts: 419 ✭✭mkdon


    3k limit for aunt?


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    #8
    StupidLikeAFox
    Registered Users Posts: 7,708 ✭✭✭StupidLikeAFox


    mkdon wrote: »
    what about an aunt or uncle??? is their limit 3k also does anyone know?

    All the info is here - an Aunt or Uncle can give €32,500 tax free over a lifetime before it is CAT kicks in.

    http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html


    Anybody can give anybody 3k per year tax free before gift tax comes into the equation:
    The first €3,000 of the total value of all gifts received from any one person in any calendar year is exempt. So, you could receive a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT. This exemption does not apply to inheritances.


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