Parent has offered help with deposit

A

ash693

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My mother has offered us 20k to help with deposit and fees etc so we can trade up. We can pay back whenever we want. What do i need to know and best way to handle this fantastic offer. Cheers
 
The 20k will be deemed to be a gift from a parent(s).

You can receive 280k free of CAT from a parent(s).

So the 20k is part of your 280k allowance.
 
What Protocol has said is true in the case of a gift. However, the first €6,000 would be disregarded, so you would each lose €7,000 of your respective Group A and Group C thresholds of €280,000 and €15,075 respectively (I have assumed that "us" and "we" refers to you and your partner or spouse).

However, you have indicated that it's a loan, in which case it is not a gift on first principles. There is a taxable element under what is called "free use of property" though. However, the annual deemed value of this benefit is tiny (€200 max) based on current deposit rates and should not create any issues (e.g. tax returns, etc). Just document it between yourselves, and kick on.
 
The threshold for Group B (Brother/Sister/Son etc) is €30,150. Does it mean that for ex Son can gift €30,150 to each parent, e.g €60,300 to a couple of parents?
 
cocoa123 said:
The threshold for Group B (Brother/Sister/Son etc) is €30,150. Does it mean that for ex Son can gift €30,150 to each parent, e.g €60,300 to a couple of parents?
Click to expand...

The threshold is a personal one. A person can receive gifts from Class B up to a lifetime value of €31,150 before paying CAT.

Not sure what an ex son is?
 
Must be showing my age. "eg"

Parent can get gifts from that class up to €30,150. not sure why a son would gift a parent anything, more likely to be a loan to be repaid in the future.
 
Why is everybody talking about gifts and inheiritances when this is a loan.

I suggest OP sets up a repayment plan by DD once the property is fully bought. And OP should be aware that if her mother wants to eventually not be repaid, the best option would be for the mother to use the personal annual exemption from gift tax to do this. (3K if I remember correctly)

OP has not given us any figures so none of us can figure out if trading up is a good idea or not.
 
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