Tax implications of letting disabled child live in an apartment rent free
- Thread starter JimmyB99
- Start date
If the child is geneuinely disabled and cannot maintain themselves.
No income earned from rental of property - no income tax to pay.
CGT on future sale/transfer of the property by you during your lifetime - possible claim for exemption for time period during which the disabled child occupies the property - see s604(11). Has to be examined in context of entire period of ownership.
See https://www.charteredaccountants.ie/taxsourcetotal/1997/en/act/pub/0039/nfg/sec0604-nfg.html
See also where someone lost a case on this where their son had asbergers https://www.taxappeals.ie/_fileupload/Determinations/2021/03TACD2021.pdf
CAT - Gift and Inheritance tax. Free use of a house is a gift -eats into lifetime exemption. However, there is the S82 exemption. Seems to be an opening.
www.revenue.ie
Others might have more practical experience.
No income earned from rental of property - no income tax to pay.
CGT on future sale/transfer of the property by you during your lifetime - possible claim for exemption for time period during which the disabled child occupies the property - see s604(11). Has to be examined in context of entire period of ownership.
See https://www.charteredaccountants.ie/taxsourcetotal/1997/en/act/pub/0039/nfg/sec0604-nfg.html
See also where someone lost a case on this where their son had asbergers https://www.taxappeals.ie/_fileupload/Determinations/2021/03TACD2021.pdf
CAT - Gift and Inheritance tax. Free use of a house is a gift -eats into lifetime exemption. However, there is the S82 exemption. Seems to be an opening.
Exemption for support, maintenance and education payments
Income or gains that are exempt from CAT
www.revenue.ie
Others might have more practical experience.
Last edited:
thecoffeepod
Registered User
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Assuming it's not your PPR
The market rent of the property would be seen as a gift to the child who stayed there rent free
there is the €3,000 small gift tax exemption limit.
generally, the stay though won’t lead to a tax bill as they have 400k tax free limits on gifts and inheritances from a parent available to her/him
also for the gifting of the home (maybe in the future)
check this https://www.revenue.ie/en/gains-gif...alifying-conditions-gift-on-after-251216.aspx
and
and
The market rent of the property would be seen as a gift to the child who stayed there rent free
there is the €3,000 small gift tax exemption limit.
generally, the stay though won’t lead to a tax bill as they have 400k tax free limits on gifts and inheritances from a parent available to her/him
also for the gifting of the home (maybe in the future)
check this https://www.revenue.ie/en/gains-gif...alifying-conditions-gift-on-after-251216.aspx
and
and
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