2 Sisters Selling House, 1 Non-Resident??

MPH

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2 Sisters buy a house as PPR between them in 2002
One sister works abroad on a month on - month off basis so solicitor advises (wrongly in hindsight) that Sister A buy the house in her name and claim the mortgage interest relief as Sister B is Non Resident.
B pays A half the mortgage into her bank account for the next six years.

Now they decide to sell the house.

A is concerned that mortgage payments from her sister could be seen as rent because her Sister is not named on the title deeds.
Because B is not on the deeds A's tax advisor says get solicitor to do up a declaration of trust to the effect that A is legal owner but B is beneficial owner of 50%. To A's shock and dismay B now says she is not sure if her non resident tax status will stand up to scrutiny as she never made a declaration to Revenue that she was becoming non resident for tax and has not kept records of days in and out of Ireland going back over the last 6 years so is not sure if she could prove 183 day rule.

Any feedback would be greatly appreciated.
 
As always take proper advice. If the intention is that n/r sister is to get a share, then she is disposing of an asset and CGT pay be due. If there is no profit, then what CGT applies?

I have always been wary of these "not quite all that it seems" situations because inevitably chickens come home to roost. So, take tax advice.

mf
 
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