Tax Exemption For Dwelling House

T

Terry McCann

Registered User
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Hi Everyone,

Long story short I have been living in my parents second property for 4 years paying the mortgage etc,they had got into difficulty with the repayments at the time but I have been lucky enough to turn things around. My name is not on the property.

My question is if my parents are to sell the property in the next few years am I entitled to recieve the €280,000 tax exemption limit (as defined in last weeks budget) off the sale price and use it to buy a home? Or must I inherit the house and remain living there for 6 years to qualify for the aforementioned exemption?

Many thanks in advance to any of you who take the time to reply it would be greatly received.
 
Hi Terry,

The Dwelling House Exemption is an exemption from CAT, where a gift of a dwelling house is given to an individual and that individual continues to occupy the property for a further 6 years from the date of the gift, (unless over 55).

The exemption would not apply in the circumstances outlined in your post.
 
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Thanks for the reply Sophrosyne.

We had been trying to figure out how best to "pass the property on" from parents to child so to speak and pay as little tax as possible.

Thanks again
 
If your parents made you a gift of the house, in which, subject to the other conditions, you would exempt from CAT.

This, of course would mean that your parents would not gain anything from the transaction.

It would be worth your while to speak to a tax practioner for advice in this matter.
 
Sophrosyne said:
If your parents made you a gift of the house, in which, subject to the other conditions, you would exempt from CAT.

This, of course would mean that your parents would not gain anything from the transaction.

It would be worth your while to speak to a tax practioner for advice in this matter.
Click to expand...

I shall do just that,thanks again for the replies.
 
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