Father signing over a property to me.

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naomhbooboo

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Hi my father wants to sign over a second property he has to me. I used to live in this house up to 4 years ago. It is rented out, and he will still be getting the rent. Since then i have bought my own property. My question is will i have to pay tax on this immediately? I am not selling it. Will it be considered a gift? The property would be roughly worth about 240k. He wants to sign over things now.
 
The date of the transfer is the date of the gift. Gifts received prior to 31 August are due to be reported by 31 October.

If he gifts you the house then you need to aggregate all the gifts from your parents since '91 and deduct the annual exemption of €3000 and add the current gift and compare it to the theshold of €225k.

You will have to pay income tax on the rents.
 
naomhbooboo said:
Hi my father wants to sign over a second property he has to me. I used to live in this house up to 4 years ago. It is rented out, and he will still be getting the rent. Since then i have bought my own property. My question is will i have to pay tax on this immediately? I am not selling it. Will it be considered a gift? The property would be roughly worth about 240k. He wants to sign over things now.
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I find this very hard to follow.

Your father is signing over a house to you- so it will be in your name. And yes, what else is it except a gift? In addition to the possibility of CAT as Joe 90 deals with , you'll also pay stamp duty on the transfer @ 1%.

He will continue to collect the rent - even though the property is in your name so it will be your income, taxable in your hand, which you will then be gifting on to your father.

It is really quite a messy idea- has anyone really thought it through? Is this just an off hand, don't think about it, don't consider the consequences notion................

Is there some other issue lurking in the background that makes sense of the idea?

If he wants to make sure you get the house but he keeps the rent, why not just leave it in his will to you?

There will be no stamp duty and no worries about who is getting the rent.

mf
 
ok defo food for thought there. This is probably another ridiculous question Joe but if you have had no gifts from your parents since 91 can those years tax free threshold be added to the 225000 it is at currently. like 24 years by 3000 an additional 72000 on top of the 225000. I say I already know the answer but have to ask anyway!
 
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