Woodville56
Registered User
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- 22
I have seen this exemption mentioned elsewhere in this forum and am wondering how it would work out in the following scenario which currently applies in the case of a near relative as follows:
My nephew is current living (rent free) in a house jointly owned my myself and my sister - his mother. The house was inherited by us some time ago and as my nephew was attending college we agreed that he should live in the house. My sister and I have now decided to give/ gift the house to my nephew and we are considering the most tax efficient way to do this.
Am I correct in my interpretation of the Cat 10 dwelling house exemption that if he lives in the house continuously for a period of 3 years, we may transfer/gift the property to him without any tax liability after the 3 years residency, provided he continues to live in the property for the defined period thereafter ? Are we correct in our thinking ? In such a scenario are there any other taxation issues to consider or that we need to be aware of?
My nephew does not own any other property and both my sister and I have our own homes, so there is no requirement for us to retain our interest in our "inherited" property if, after the 3 years residency, we wish to gift it to him. Also , in relation to his proposed 3 year occupancy of the house, what type of proofs will be required for Revenue to confirm his residency over the 3 year period ?
I understand that we will need to go down the road of getting professional legal advice should we proceed with this gifting, but would value any opinions it advice here in advance of proceeding at some stage in the future.
Thanks !
My nephew is current living (rent free) in a house jointly owned my myself and my sister - his mother. The house was inherited by us some time ago and as my nephew was attending college we agreed that he should live in the house. My sister and I have now decided to give/ gift the house to my nephew and we are considering the most tax efficient way to do this.
Am I correct in my interpretation of the Cat 10 dwelling house exemption that if he lives in the house continuously for a period of 3 years, we may transfer/gift the property to him without any tax liability after the 3 years residency, provided he continues to live in the property for the defined period thereafter ? Are we correct in our thinking ? In such a scenario are there any other taxation issues to consider or that we need to be aware of?
My nephew does not own any other property and both my sister and I have our own homes, so there is no requirement for us to retain our interest in our "inherited" property if, after the 3 years residency, we wish to gift it to him. Also , in relation to his proposed 3 year occupancy of the house, what type of proofs will be required for Revenue to confirm his residency over the 3 year period ?
I understand that we will need to go down the road of getting professional legal advice should we proceed with this gifting, but would value any opinions it advice here in advance of proceeding at some stage in the future.
Thanks !