Selling 50% of house to brother

nbc

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Hi
I have a property worth E150,000 ( purchased 2005 for E100,000 approx)

I am hoping to sell as I owe my brother 75K and normally I would have to pay 33% capital gains on 50k capital gain( I realise buying and selling expenses are deductable but want to keep figures simple)

My brother has suggested he buy half the house as the rental income( 1000k per month so 500 each) is far more than what he would get in the bank. He has retired and has no financial issues)

So my questions are
1) is this beneficial to me in terms of capital gains or not? Im not sure if I would need to pay 50% of the original capital gain
2) Adding him to the deeds - what might this cost?

Regards
NBC

PS we own an apartment together for 15 years already and we never have any issues- some may suggest getting involved with family an issue but in this case it's really fine.
 
Is there any mortgage outstanding? If not legal aspects are straight forward but you will need a solicitor to do it for you.

From tax perspective, you are realising gain on 50% of the asset.

Your brother would also pay stamp duty on his 50%.
 
PS we own an apartment together for 15 years already and we never have any issues

I fully understand that you get on well with your brother but things can change. Partners can interfere. And if there is bad tenant or other problem, then you could fall out over how to deal with it.

Despite this, I think it's not a bad idea to jointly buy an investment property, where each person couldn't afford to buy on their own.

But it doesn't really make that much sense to own two investment jointly. It would be far better for you to own one outright and for him to own the other one outright.

So perhaps you should be selling him your share of the other apartment?

Brendan
 
Is there any mortgage outstanding? If not legal aspects are straight forward but you will need a solicitor to do it for you.

From tax perspective, you are realising gain on 50% of the asset.

Your brother would also pay stamp duty on his 50%.

So, the gain is split in half? I'm a joint owner (50/50) Our combined gain is 20k, and the accountant has come back that my chargeable gain is 20k... this should be 10k, right?
 
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