Inherited my father's house

D

davep

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Having recently inherited my father's house I have the following situation. House is in Dublin. I live in rural area. My son has moved into the house and is paying services, ESB gas and the like. He is not paying rent. What is the situation from a revenue point of view. Am I allowed to do this? Does he fall under benefit in kind? How best to proceed , I am happy for him to be in the house as it gives me peace of mind
 
Why would there be anything from a revenue point of view? Its owner occupied effectively. Its not rented out.
 
See this from Revenue

http://www.revenue.ie/en/tax/cat/guide/free-property-loans.html

I expect a lot depends on what davep intends to do with the property ultimately? If this is a short term arrangement (e.g. if house will be sold) , nothing much arises.

If it is to be a long term arrangement, perhaps some thought should be put in to how best to manage situation - e.g. transfer house to son? Or a share of the house?

Take proper tax advice

mf
 
Ok thanks for that. No, I intend keeping the house as its in a good area and my son will continue to live there. Thanks mf1 for the link. I reckon the value of the rental might be / would be about €18,000 per year on the open market. I will have to take proper tax advice as its only the upkeep charges that my son is paying. However , if I did not rent out the house, I expect I would have to pay someone to look after the house for me. Having my son do that is a big bonus for me but I do not want a possible problem for him down the road. Ultimately, he will have the house anyway.
 
Wasn't there something recently about Revenue looking at situations where children living in apartments/houses belonging to their parents and not paying any rent, would be assess for the benefit. Also those paying below the market rent would be seen as gaining financially as well, e.g. the apartment would rent on the open market for 1000 euro per month but the son/daughter only pays 500. This was proposed to prevent abuse by parents who actually do charge rent but don't declare it for tax purposes. I would imagine that is quite common but Revenue can't prove it.

Here is a piece from the Examiner some time ago:
"... potentially liable will be adult children currently living rent free in secondary houses owned by their parents. In this case, the liability would be based on the income said property might earn if rented on the open market by the owner".

Not sure if there was any follow up by Revenue on this. Would appear not.
 
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