RichieRich
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You could always give her a loan of the 70k which would not effect the threshold Brendan mentions.Hi all,
I would like to give my daughter 70,000 euro to assist in her buying a home. Can this be done without incurring tax liability for either of us?
It’s a gift so she won’t be paying me back.
Thanks in advance
But Richie said she won’t be repaying it , so how would that work?You could always give her a loan of the 70k which would not effect the threshold Brendan mentions.
YesActually if OP gives 3k pa is that outside of the lifetime total?
€70k loan today. Next year Richie gives her a €3k tax free gift under Small Gift Exemption, daughter uses it to ‘repay’ €3k of the loan. Rinse and repeat until the €70k is ‘repaid’, no impact on lifetime CAT allowance. If Richie and daughter have spouses it could probably be ‘repaid’ at €12k per annum. Some minimal interest might need to be factored in.But Richie said she won’t be repaying it , so how would that work?
What happens if your parents loan you for example 1 million. Can you decide to pay that off 3k per year or can you agree to repay it at for example €1000 per year? What are the stipulations when repaying the loan?€70k loan today. Next year Richie gives her a €3k tax free gift under Small Gift Exemption, daughter uses it to ‘repay’ €3k of the loan. Rinse and repeat until the €70k is ‘repaid’, no impact on lifetime CAT allowance. If Richie and daughter have spouses it could probably be ‘repaid’ at €12k per annum. Some minimal interest might need to be factored in.
Thank you very much Brendan!Yes, you can.
She can receive from her parents by gift or will a lifetime total of €335,000.
There is no tax liability for the donor - unless you are selling some asset on which you make a capital gain.
Brendan
It’s not allowed. The second series of gifts are recharacterised as coming from him.Ok so lets say hypothetically that the OP has a large family and has 10 children, all have spouses.. plus he has the daughter he wants to give money..
Can he gift 3k to each child & their respective spouses?
Then in turn can these siblings abd spouses each gift the daughter 3k? So 20 x 3k, 60k
Extreme example but surely that cant be allowed, even if technically right as its not really in the spirit..
€70k loan today. Next year Richie gives her a €3k tax free gift under Small Gift Exemption, daughter uses it to ‘repay’ €3k of the loan. Rinse and repeat until the €70k is ‘repaid’, no impact on lifetime CAT allowance. If Richie and daughter have spouses it could probably be ‘repaid’ at €12k per annum. Some minimal interest might need to be factored in.
Yes it would be taxable but the interest need only be at the deposit rate the issuer of the loan might have expected to get with a bank, so maybe 0.0%-0.2% at best.Wouldn’t the interest be taxable though ?
As it could be seen as a gain
If you do this make sure that this is well thought through and written down.Next year Richie gives her a €3k tax free gift under Small Gift Exemption, daughter uses it to ‘repay’ €3k of the loan. Rinse and repeat until the €70k is ‘repaid’, no impact on lifetime CAT allowance. If Richie and daughter have spouses it could probably be ‘repaid’ at €12k per annum. Some minimal interest might need to be factored in.
It’s not allowed. The second series of gifts are recharacterised as coming from him.
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