Parents and parents in law helping me pay off mortgage - tax implications

T

trident

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My parents will give me Euro 30,000 and my parents in law will also give me Euro 30,000, both sums will be used to pay off a mortgage. The house is for sale at present. When it sells, hopefully in a few months, I will pay them back. Are there any tax implications for me or for them in doing this?
Any replies appreciated.
 
Structured as presented, there are no tax implications where there is a clear intention to return funds over the short term.
Where possible, maintain a paper trail of transactions (no cash handed over etc.) so if it ever becomes an issue, you can provide the funds being received and returned.
 
rob oyle said:
Structured as presented, there are no tax implications where there is a clear intention to return funds over the short term.
Where possible, maintain a paper trail of transactions (no cash handed over etc.) so if it ever becomes an issue, you can provide the funds being received and returned.
Click to expand...

Very interesting, as I have a potentially similar situation with my niece.

She is in a situation similar to OP trident. I may be giving her a sum of money to get her through the redemption of a mortgage. I appreciate that if I give it as a gift there will be CAT implications as we may just pass the category B threshold upper limit.

If I give her the funds as a loan how will Revenue look at that transaction if there is a nominal "contract" in place to repay over a long period of time. In other words, as Revenue see it, what constitutes a true loan as distinct from a piece of artifice disguised as a loan where there is no real intention to repay ?
 
Why bother with artifice? Keep life simple. If it's a gift, then treat it as a gift.

Depending on the timing, you may be able to give her €3k before the end of the year to avail of the small gifts exemption and the balance after the year end.

Brendan
 
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