Tax Implications- Inheriting a Property

[shay]

New to this site, I was looking for some help.

My father inherited a house a number of years ago and paid an inheritance tax on it. He rented the property for a few years but in the last few years the property has become rundown. He wants to give the property to me. I have my own house. What would the tax implications be for the two of us.

 

[Graham_07]

He may have [broken link removed]to pay on the disposal to you ( even if no money passes between you ) if the value on transfer is greater than the value he inherited it at + indexation(to 2002)+ enhancement costs.

You may be liable to [broken link removed]if the cumulative benefits from parents exceed the current limit currently €434,000 from parent to child .

There is a relief known as "same event relief" where if the same transaction gives rise to both CAT and CGT then the CGT paid may be offset against the CAT due.

There may also be Stamp Duty implications but there are reliefs between connected parties.

If in doubt seek appropriate professional advice.

 

[shay]

Thanks Gramham_07 for your response just one last question relating to the figures. Lets just say

Value of property was 5000
Index value and conversion to euro today 6900
Inheritance Tax he paid 600
Repairs + Solicators fees 1000
Maintenance 600
Current Value 12000

Is his tax based on 25% of 12000 - (6900 + 600+1000+600) = 2900

My bill will only be the stamp duty @3.5% of the difference present value of house - (€125,000 no stamp duty up this figure)

Would this be the correct understanding. I have a meeting with tax advisor next week so just wanted to get some sort of handle on figures.