CAT on inherited parents house

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monkey0804

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I am joint executor on my parents estate. I have processed probate myself and that was signed off. The only thing in my parents estate is the house, which is to be divided equally between the 4 adult children. The house was valued at 420k and sold at 450k. I've been advised that I have to pay CAT (or CGT?) on the difference of 30k.

Can some one advise me on this? I can't find documentation on how to do this. And do I pay this for my 1/4 or do I pay on the total amoubt before passing on the monies?

Thanks in advance.
 
The estate has to pay CGT on the difference between the sale price, less any expenses, and the value declared in the probate document

The executor is responsable for filing the estate income tax and CGT returns
 
Thank you, that's great to know. I'll call revenue to see how to do that.

I appreciate your help.
 
Gmac said:
Sorry to hijack the thread. When probate was submitted the house was valued at 300k and with a few issues with getting forms signed and personal issues it took over a year to get everything done. So house could be valued maybe 330 but who knows. If sold for 330 would I’d be liable on the 30k or if indexed linked from when forms was first submitted it would be 330 when completed. So 0 gains. Hoping to shift it soon so wondering what comes out the other end. Thanks
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I'm a little further along this process since I first asked for help (and thank you to all who helped) so know a little more now.
You are liable for capital acquisition tax on the difference between quoted sale price in your probate filing and the actual sale price. In your case (and mine) this is 30k. From this 30k you deduct costs - solicitor, estate agent, cost of keeping house during period of it being sold (electricity and heat, grass cut, clear out of house/skip/recycling charges etc) and any other relevant costs. Once the estate is divided between whomever inherits it (if shared) then each person is responsible for paying their own CAT on the 30k less expenses at 33% tax. You may be randomly selected, and have to provide details of these costs.

I hope this helps.
 
monkey0804 said:
I'm a little further along this process since I first asked for help (and thank you to all who helped) so know a little more now.
You are liable for capital acquisition tax on the difference between quoted sale price in your probate filing and the actual sale price. In your case (and mine) this is 30k. From this 30k you deduct costs - solicitor, estate agent, cost of keeping house during period of it being sold (electricity and heat, grass cut, clear out of house/skip/recycling charges etc) and any other relevant costs. Once the estate is divided between whomever inherits it (if shared) then each person is responsible for paying their own CAT on the 30k less expenses at 33% tax. You may be randomly selected, and have to provide details of these costs.

I hope this helps.
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The idea is one sibling to buy the other one out as they’re living there currently. I want rid of house so can be used to pay down my mortgage. Not sure how that will work in expenses like that but they’re be legal fees etc. don’t want to gift them it but within reason
 
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