Nearly 1% of households live in someone else's rent free.None whatsoever. That’s allowed.
Technically providing free accommodation constitutes a gift.
However, an annual allowance of €3,000, plus a cumulative tax-free threshold of €32,500 applies in this scenario.
In any event, I strongly suspect that Revenue would have zero interest in a family arrangement of this nature.
Is this true? I thought once its not your PPR then CGT would apply?possible benefit is that there is no CGT in those curcumstances
It would indeed.Is this true? I thought once its not your PPR then CGT would apply?
Any consensus on the CGT if the event of the parent dying and the apartment being sold ? If the kids went to college elsewhere. Person in question doesn't really want to be a landlord given the current PRTB and high taxation of rental income.
Thank you Gordon. What defines a dependent relative ? He is not dependent in a financial sense other than he wouldn't have had the funds to purchase an apartment outright or get a mortgage. He was fortunate to have a good pension from work when he retired on these health grounds but ended up having to rent after leaving the family home so paying his own expenses, utilities etc is not an issue.
In any event, I strongly suspect that Revenue would have zero interest in a family arrangement of this nature.
That Section provides that a “dependent relative”, in relation to an individual, means a relative of the individual, or of the wife or husband of the individual, who is incapacitated by old age or infirmity from maintaining himself or herself, or the widowed father or widowed mother (whether or not he or she is so incapacitated) of the individual or of the wife or husband of the individual.Section 604(11) TCA 1997 extends PPR Relief to scenarios where the property in question is the residence of a dependent relative.
That Section provides that a “dependent relative”, in relation to an individual, means a relative of the individual, or of the wife or husband of the individual, who is incapacitated by old age or infirmity from maintaining himself or herself, or the widowed father or widowed mother (whether or not he or she is so incapacitated) of the individual or of the wife or husband of the individual.
Would the parent fall within that definition?
Somewhat hilariously, it includes a parent who’s 65 or over. I have to remind my Dad that he’s incapacitated in the eyes of Revenue when he wins the money on the golf course or wants to order an extra bottle of red.
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