Capital Tax before inheritance ?

Discussion in 'Wills, inheritances and gifts' started by Earl Grey, Apr 20, 2018.

  1. Earl Grey

    Earl Grey New Member

    Posts:
    5
    Out of blue, my friend confidence in me that he brought a house, five years ago "buy to let" rent house to his son, paying €600 a month, my friend paying mortgage cost €1,000 avenge a month for 10 years. Five years ago friend brought house for €130,000, mortgage 100,000, telling me that in five years time when mortgage is paid off, his house today is worth he guesses about €230,000 give his son the owner of the house as inheritance.

    l cannot get my head around it.

    The question.... does friend have to pay Capital Tax before giving the house to him. €100,000 profit ? inheritance threhold to his son is €320,000.

    No mention about Tax relief if he is entitle to it ?
     
  2. RedOnion

    RedOnion Frequent Poster

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    1,274
    Yes. Son will also have to pay stamp duty.

    However, son can offset the CGT against CAT.
    https://www.revenue.ie/en/gains-gif...nst-cat/credit-for-capital-gains-tax-cgt.aspx

    There was another post on the topic recently, but I can't find it right now.

    There might be other tax complications around the current rental arrangements, so it's worth talking to a professional, (especially if there are potentially future inheritances).
     
  3. Vanilla

    Vanilla Frequent Poster

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    4,086
    RedOnion likes this.