Can I receive a 2nd cash gift from parents?

[bobo2006]

I am buying my second property shortly and have been offered a cash gift from my father. He previously provided a cash gift for the first property (which I will now let). Apart from the €500k thresehold, which won't be an issue, is there any reason why I cannot receive this tax free?

 

[asdfg]

Not that I'm aware of but you should be aware of the following;

Any gift received in the past or prior to inheritance will be deducted from the treshhold
If you are letting the property within 5 years of purchasing you will be liable to stamp duty clawback.
You will have to pay tax on the rental income. You are allowed deduct expenses See [broken link removed]

 

[bobo2006]

Many thanks asdfg. I take your point that the gifts are deductable from inheritance tax. And on the stamp duty clawback within 5 years. This will apply for me alright.

Aside from leaving the property vacant I wonder is there any above the board way of avoiding the stamp duty clawback. As far as I know the main trigger for this stamp duty bill is tenants claiming rent relief and passing landlords PRSI number. I don't think claiming stamp duty on a new home in itself triggers this...?

Any thoughts would be welcome. Cheers.

 

[Howitzer]

What triggers the clawback is you renting the place out. Nothing else. If (when?) you don't pay it interest is charged on a daily rate at a punitive rate.

 

[Bronte]

If it's a second property then there will be stamp duty in any case.

 

[bobo2006]

Thanks Howitzer. I'm aware that stamp duty is payable if renting if within 5 yrs of exemption alright. I would probably perfer to defer paying for a year say but might not be sensible if paying double figs(?) punitive tax. Definitely would not want to be naughty and avoid altogether. Heaven forbid.