Buying House From Parents

S

Shortfield

Registered User
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Hi there,
So years back my folks bought a house in which myself and my brothers were living. They subsequently moved out and got married etc leaving me there sharing with a friend. I've since gotten hitched myself and now my wife has moved in (the friend got the heave ho). It's a great house but needs work (old, cold, new windows/ insulation etc) so myself and herself want to take ownership/ buy it from the folks. I'm anticipating a response from them going "oh there's no need to buy it, we don't want to see your burdened with mortgage etc" but then its not really ours? Nor (touch wood) do i want to end up falling out with siblings of expectations of inheritance etc down the line (hopefully a long way down the line).

Also I don't think the folks want to get slammed with Tax on the purchase etc, I think there's options on "gifting" or maybe I'm imaging that.

My question is if anyone has any straightforward advice/ been through anything like this before?

Thanks!
 
Transactions between connected persons take place at market value.

So they can gift you the property but the value for Capital Gains Yax for them is the market value of the property.

The value to you of the gift is the market value of the property.

So if you want to get the property into your hands your parents will need to deal with the CGT and you will have to deal with CAT. The first €310k of lifetime gifts is exempt from CAT so may be no exposure depending on the value.
 
You might just get over the line for the Dwelling House Exemption (abolition date likely to be 20 December).

Doesn't deal with the CGT mind.
 
Also it should be clear and upfront to your siblings what is happening. By email. So you have a trail of it and they don't hit you with it negatively in 10 or 20 years time.
 
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