If market value at time of sale is lower than valuation at date of death

[RedOnion]

Group B Cat is €32500 and you could include the small gift of €3000 too you and your husband may just avoid any gift tax is my understanding.

How does a Group B threshold of 32,500 cover a gift of 105,000? I'm clearly missing something.

 

[Pinoy adventure]

How does a Group B threshold of 32,500 cover a gift of 105,000? I'm clearly missing something.

Sorry my mistake.
Group b = 32500
Small gift husband 3000 from sibling 1
Small gift wife 3000 from partners sibling.
X3 siblings would be
€32,500
+ €6000
+ €6000
+€6000

Total 50,500 so the balance of 54,500 may be taxed

 

[torblednam]

The probate valuation is for a particular purpose and it has served that purpose.

You are now looking at a new transaction at a different point in time; the sale, for consideration, of the property.

In such a case, each of the parties can and should go and get their own current professional valuation. If the consideration agreed falls somewhere in and around the range that those two valuations produce, this would be quite persuasive evidence that the consideration represents market value, regardless of what the probate valuation was (within reason). It wouldn't be unusual for two valuers to arrive at valuations that differ by 10% - 20% especially for one-off, higher end property, as opposed to a standard house in an estate in a city or large town for which there are plenty of highly comparable properties changing hands regularly.

 

[ROS]

I know this is an old thread. What value is used when calculating the amount of inheritance that includes the sale proceed from a house. Is it the probate valuation or the price the house sold for. In particular where the probate valuation is higher than the actually sale price. This question relates to the resulting tax liability.



For example the probate valuation is €450,000. But the house is sold for €425,000. The Statement of Affairs (Probate) has the figure of €450,000. What figure should be included when completing the CAPITAL ACQUISITIONS TAX (CAT) - Form IT38S.

 

[T McGibney]

I know this is an old thread. What value is used when calculating the amount of inheritance that includes the sale proceed from a house. Is it the probate valuation or the price the house sold for. In particular where the probate valuation is higher than the actually sale price. This question relates to the resulting tax liability.



For example the probate valuation is €450,000. But the house is sold for €425,000. The Statement of Affairs (Probate) has the figure of €450,000. What figure should be included when completing the CAPITAL ACQUISITIONS TAX (CAT) - Form IT38S.

What is the valuation date of the inheritance in question?

 

[ROS]

Thanks for the response. Is that the same as the date the deceased died. If so the 25/3/2021.

 

[ROS]

The house is not lived in so is the valuation date the day the probate was issued. If so the 15/1/2022

 

[T McGibney]

Thanks for the response. Is that the same as the date the deceased died. If so the 25/3/2021.

The house is not lived in so is the valuation date the day the probate was issued. If so the 15/1/2022

How the valuation date is determined in practice depends on the precise circumstances of the case. The rules are more subtle than the various Revenue online summaries suggest. If it is likely to make a significant difference, you could consider getting specialist tax advice on it.

 

[AlbacoreA]

In my "opinion" Revenue are really only looking for large disparities. Where people attempt to mislead and avoid tax.
Not where the differences are "relatively" minor.

Also if you are inheriting something thats well within your inheritance allowance (due to division between siblings etc.) is very different (probably no liability) to where its well above your allowance that you are the sole beneficiary. Some will there for over estimate and some will underestimate it.

When the market is moving fast there can be 10~15% difference in a year. So its a moving target. Especially if probate and the subsequent sale is delayed.