Hi,
Any advice welcome.
My friend and I bought an apartment in 2004.
Cost €295,000.
Deposit €29500. Paid half each.
We both live there, it is our only property, and have shared the mortgage 50/50.
I now want to get my own place with my girlfriend and sell this apartment.
My friend has suggested I take my name off the mortgage & deeds, and he will keep the place.
The bank has agreed to this.
The apartment is today worth €230,000 .
We have an outstanding mortgage balance of €180,000.
My friend suggests he gives me €25,000 as this is how much I would get for my half if we sold it the normal way.
I am fine with this.
My question is will I be liable for any tax on this €25,000?
I know if we sold it normally I wouldnt as the apartment is still worth less than what we paid for it.
However, as I am simply removing my name from the deeds & mortgage, I am concerned revenue will consider this €25,000 as some sort of gift.
Many thanks for your time.
D.
Any advice welcome.
My friend and I bought an apartment in 2004.
Cost €295,000.
Deposit €29500. Paid half each.
We both live there, it is our only property, and have shared the mortgage 50/50.
I now want to get my own place with my girlfriend and sell this apartment.
My friend has suggested I take my name off the mortgage & deeds, and he will keep the place.
The bank has agreed to this.
The apartment is today worth €230,000 .
We have an outstanding mortgage balance of €180,000.
My friend suggests he gives me €25,000 as this is how much I would get for my half if we sold it the normal way.
I am fine with this.
My question is will I be liable for any tax on this €25,000?
I know if we sold it normally I wouldnt as the apartment is still worth less than what we paid for it.
However, as I am simply removing my name from the deeds & mortgage, I am concerned revenue will consider this €25,000 as some sort of gift.
Many thanks for your time.
D.