Selling house to family

decky1

Trying to sell my late parents house to my daughter, which was valued in 2013 at 140,000 , so told her she could have it at that [as i have 2 other children i wanted to give them a help to get on the property ladder] as it's valued at 200+ now it seems it will cost me 40,000 to sell it and will cost her 20,000+as well, seems it's all down to the tax man, my parents worked all their lives and paid for this house [ nothing fancy just a 2 up 2 down with a small kitchen and bathroom, . My solicitor is going on about the 'Treshold is 320.000 but it seems the 2 of us have to pay said amount, At the end of the day do we own our houses at all or are we just minding them for the tax man? i'm totally confused.:eek::mad:

Samuel T. Cogley

You're selling at under market value so there is a gift involved. I thought the threshold was 320K from parent to child though. I'm not quite sure from you post who is telling you what. It seems the solicitor agrees there is a gift threshold of €320K.

Claw Hammer

Samuel T. Cogley wrote: »

You're selling at under market value so there is a gift involved. I thought the threshold was 320K from parent to child though. I'm not quite sure from you post who is telling you what. It seems the solicitor agrees there is a gift threshold of €320K.

Are you selling as executor or did the house go to you from your parents?

CrabRevolution

Is the house legally yours, or are you trying to sell it straight from your parents (or more accurately their estate) to your daughter?

bleary

decky1 wrote: »

At the end of the day do we own our houses at all or are we just minding them for the tax man? i'm totally confused.:eek::mad:

Yep you do and you get complete relief from capital gains tax on your own house.
However on this second house you won't
you are gifting your daughter thousands here. Lucky girl.

Edgware

bleary wrote: »

Yep you do and you get complete relief from capital gains tax on your own house.
However on this second house you won't
you are gifting your daughter thousands here. Lucky girl.

Can you not use this figure against the 320000 inheritance threshold?
This would of course mean that down the line she pays tax on anything she inherits over 320000.

Marcusm

decky1 wrote: »

Trying to sell my late parents house to my daughter, which was valued in 2013 at 140,000 , so told her she could have it at that [as i have 2 other children i wanted to give them a help to get on the property ladder] as it's valued at 200+ now it seems it will cost me 40,000 to sell it and will cost her 20,000+as well, seems it's all down to the tax man, my parents worked all their lives and paid for this house [ nothing fancy just a 2 up 2 down with a small kitchen and bathroom, . My solicitor is going on about the 'Treshold is 320.000 but it seems the 2 of us have to pay said amount, At the end of the day do we own our houses at all or are we just minding them for the tax man? i'm totally confused.:eek::mad:

You need to speak again with the solicitor and/or get separate tax advice of the solicitor can’t provide it. It will be important for the transfer to be constructed such that there is no double charge to tax (CAT and CGT). There will be tax to pay but it should be less than you suggest.

4ensic15

Your daughter will need a separate solicitor. You should both go and see a tax professional. Your post is not clear about how you came by the house and therefore it is not possible to say what options there are.

decky1

Hoping to see an accountant this week, when my father died it passed on to my mother and when she died she left it to me, but it seems now that she never got the house put into her name [another can of worms]

quietsailor

decky1 wrote: »

Hoping to see an accountant this week, when my father died it passed on to my mother and when she died she left it to me, but it seems now that she never got the house put into her name [another can of worms]

Be very careful here, from what you've posted your mom didn't "own " the house in legal terms. Everyone, even the tax people would know that she owns it but there was no proof of title change. You may need to re open your fathers estate.

GO TO A SOLICITOR THAT DEALS IN INHERITANCE LAW. I know the capital letters above are shouting, I meant it that way! You run the risk of fouling up three estates here, your dad to mom, mom to you and you to your daughter. No one on boards has good enough advice for you on this

This is fixable, it will just take time and professional advice.

decky1

quietsailor wrote: »

Be very careful here, from what you've posted your mom didn't "own " the house in legal terms. Everyone, even the tax people would know that she owns it but there was no proof of title change. You may need to re open your fathers estate.

GO TO A SOLICITOR THAT DEALS IN INHERITANCE LAW. I know the capital letters above are shouting, I meant it that way! You run the risk of fouling up three estates here, your dad to mom, mom to you and you to your daughter. No one on boards has good enough advice for you on this

This is fixable, it will just take time and professional advice.

will do thanks.