If you pay your parents rent they are due to pay tax on same (after allowing for €3k yearly gift tax exemption).
If the market rental income for the house was 13k the 3k yearly allowance can be offset the 13k therefore pay tax on the 10k.How are they connected?
No it can't.If the market rental income for the house was 13k the 3k yearly allowance can be offset the 13k therefore pay tax on the 10k.
Is this revenues rules I am curious ? If you gift a reduction in rent equivalent to the 3k rather than physically giving 3k in cash how does it differ.Not it can't.
A 'gift' in exchange for something else is not a gift, so it'd be taxed as income.
Just checked this out on Revenue please seehttps://www.revenue.ie/en/gains-gifts-and-inheritance/valuation-date-and-the-value-of-certain-benefits/free-use-of-property-and-interest-free-loans.aspxNot it can't.
A 'gift' in exchange for something else is not a gift, so it'd be taxed as income.
We are 42 and 44.You'd need to provide a few more details:
Is your valuation up to date? Seems a little low as average house prices nationally are back at 2005 levels (not apartments though).
- How old are you both?
- His income?
- Ages of kids?
- Are you on a tracker? How long left?
With Covid of course who knows.
Have you reached a separation agreement with your husband?
At the moment, your equity, in simple terms is half of €50k or €25k.
If you have a tracker mortgage, you would argue that this should be increased.
But you need to agree now what happens. If he pays the mortgage for the next 10 years, will he claim full ownership?
A simple agreement such as "I will stay in the house and pay the mortgage" doesn't really work out that well for you.
Who is the lender? And what is his income? They might let him take your name off the mortgage if his income is over €60k.
If they don't, what happens if he stops paying the mortgage? Your credit record will be damaged.
If he can give you €50k cash now , it might be worth you giving up your claim to the home.
Brendan
My parents are reluctant to sign over their house. They're only in their early 70s and it's their security. The rent is their only income.Unlikely you parents would get a mortgage at their age unless short term with high repayments.
Would you be inheriting house in future? If yes have same signed over to you now (assuming below inheritance threshold). If you pay your parents rent they are due to pay tax on same (after allowing for €3k yearly gift tax exemption).
Can your ex partner buy you out now? You will find it difficult to get another mortgage while already on one.
If I were them I’d be thinking the same. Your rent to them will come in under rent a room so will be tax free to them. Is the granny flat attached to the house.My parents are reluctant to sign over their house. They're only in their early 70s and it's their security. The rent is their only income.
Your parents could be tenant for life in property. You will own the property but they will have a roof over their head and you can never evict them. Protects the state having to house them.My parents are reluctant to sign over their house. They're only in their early 70s and it's their security. The rent is their only income.
If I were them I’d be thinking the same. Your rent to them will come in under rent a room so will be tax free to them. Is the granny flat attached to the house.
Do your parents not get the state pension.
Your parents in no circumstances should apply for a mortgage. Luckily they won’t get it.
Why would you invest 200k in something you don’t own. If your current home is valued at 250k you might be better if buying your own house.
If the house was good enough for your parents why does it need such massive renovations.
Do you have siblings.
Whatever you do, do everything to get your name off the married hone. Including losing the 25k.
Never thought of maintenance. Can't see a bank giving a loan to parents at their age or to op to renovate a property she does not own. If she defaults bank has nothing as security over loan.Monthly mortgage payment is €1250 or so I reckon which can be handled easily by him on €85k.
I don't know how you will arrange maintenance and custody. But if he has a higher income you may well get maintenance - that's an additional income stream that could help you get a loan to renovate property.
I have no knowledge of family law or how to structure ownership with your parents btw. Would be useful to know if you have siblings who will one day be expecting an inheritance too.
If I were them I’d be thinking the same. Your rent to them will come in under rent a room so will be tax free to them. Is the granny flat attached to the house.
Do your parents not get the state pension.
Your parents in no circumstances should apply for a mortgage. Luckily they won’t get it.
Why would you invest 200k in something you don’t own. If your current home is valued at 250k you might be better if buying your own house.
If the house was good enough for your parents why does it need such massive renovations.
Do you have siblings.
Whatever you do, do everything to get your name off the married hone. Including losing the 25k.
That's interesting. I would look into that. They just want security. And I want it for them.Never thought of maintenance. Can't see a bank giving a loan to parents at their age or to op to renovate a property she does not own. If she defaults bank has nothing as security over loan.
Re family law, did this with my siblings and our own father and family home. Ownership changes hands but Father legally entitled to stay for as long as he wishes.
They also need an income. How much would the house rent for on the open market.That's interesting. I would look into that. They just want security. And I want it for them.
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