Dundalk_2021
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Very good point.
Brendan
For the CAT calculation you need an accurate market valuation.the house was valued at 175,000 in December 2020
My bad.The OP (Dundalk 2021) did not say the house was in Dublin
Or even somewhere like Dundalk...In Cork or Limerick the price seems plausible for sure.
Hi Brendan,is your granny availing of the Fair Deal Scheme?
If so, you will need to figure out the implications of her having a load of cash instead of having a house.
If she has dementia, can she actually sell the house to you? Has someone got a power of attorney?
This is my understanding of the tax implications:
If the house is worth €175k and you buy it for €150k, then it would be regarded as a gift of €25k.
You have a €32,500 threshold. You have used up €16,250 of it, so you have €16,250 left.
So the CAT calculation would be
Gift €25,000
Small gift exemption: €3,000
Remaining Group B exemption: €16,250
Taxable : €5,750
CAT at 33%: c. €2,000
So very small in the overall context of things.
Brendan
Gran is only maxed out as long as she owns the house. If sold, even after 4 years, the proceeds immediately become assessable.Fair Deal Loan is 3 years @ 7.5, so Gran has already maxed out.
I would guess there are many Fair Deal houses occupied by grandchildren or other family members, on a casual caretaker arrangement like this.OP - nothing to stop you moving into property now as caretaker, pay the bills & keep the place maintained.
CSO says about 1% of all homes are occupied by a non-owner rent free.I would guess there are many Fair Deal houses occupied by grandchildren or other family members, on a casual caretaker arrangement like this.
Yes, but if you sell the house you now have assessable cash that's counted towards your fair deal contribution.@twofor1 - the Fair Deal Loan only applies to the persons PPR.
If there's no PPR, there's no Fair Deal Loan.
Not confusing anything.Yes, but if you sell the house you now have assessable cash that's counted towards your fair deal contribution.
You're confusing it by looking at the 'Loan' which is only secondary to the contribution.
Apologies, I misread the context of your post without rereading the full thread, and thought you were arguing a point rather than agreeing with it.Not confusing anything.
The loan only applies to PPR; if you don't own a PPR you don't get any loan.
Not sure re numbers - but lets say there's 20k currently in care homes....thousands of empty houses around the country.
These numbers are hard to get with precision.Not sure re numbers - but lets say there's 20k currently in care homes.
Say 1/3 own a PPR - 7k. Then deduct the 1% that are being lived in by family member; so 6,300.
Six thousand empty homes.
Which is why there are thousands of empty houses around the country.
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