mickoneill30
Registered User
- Messages
- 48
We're in the process of buying a house from my parents.
They plan to gift us a certain amount of the house and we'll get a mortgage for the rest. I know a parent can give a gift to a child and they won't have to pay tax up until over €400K.
The amount isn't that much but as the gift is to us both (the house is between me and my wife) what are the tax implications for us as my wife will also be a beneficiary?
I had a look on revenue.ie but it only mentions parent -> child. There's no mention of parent -> child and his other half.
The relevant thing is that the OP is married. The 'gift' is €150K so it falls well below the c.€520K parent to child allowance. The gift is from parent to child. Then you are giving half this to your wife (husbands and wives can obviously transfer any amount between themselves) Just document it all and get professional advice for peace of mind.
It is true that husbands and wives can transfer amounts between them but they cannot be seen to do this in order to evade tax! Revenue would look through something like that and deem that the gift came from his parents to his spouse.
The best bet would be to either try to use the dwelling house exemption or alternatively structure it so that the gift goes from the parents to the son. A few years down the line he can transfer the amount to his wife but it needs to be handled carefully!!
I could be wrong but I don't think that's tax evasion...it doesn't make sense if you think about it. How are parents supposed to give their offspring anything if it's deemed to be a gift to the wife as well? A parent giving their son 150,000 in cash and then him giving his wife 75,000 clearly wouldn't incur any tax liability so why would it in this case?
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