Tax implications of returning a gift to parent

[FCBC12]

I inherited a property from my parents in 2017. Value (for example €100,000) was well below the Group A threshold (€320,000) for CAT. Circumstances have now changed whereby I want to return the property to my parents full ownership.

Question 1: If the property is valued at the same amount as in 2017, will my threshold with them remain at €220,000, or will it reverse back to the maximum (€320,000)?

Question 2: I assume my parents wont have to pay any CAT on this given it is within the 5 year period?

 

[dublin67]

I'm a bit confused - if you inherited the property in 2017 then I take it that your parents are dead. I'm taking it that it was a gift as opposed to an inheritance. If the property was transferred to you, the conveyance was executed and stamp duty paid then, in my view, you are beneficially entitled to the property. Accordingly the gift has been made. You transferring the property now to your parents is a gift from you to them and CAT applies with the Class B threshold being relevant (c.€32K or so) so CAT should arise. Your threshold level would be reduced by €100K

I'm not aware of the five year period and if this says you can do it then you have your answer.

 

[MugsGame]

Are you parents living in the property?

How was the original transfer to you effected and is there any documentation of same?

 

[RedOnion]

Question 2: I assume my parents wont have to pay any CAT on this given it is within the 5 year period?

I don't think this applies, unless there's another provision I'm not aware of.

I think the 5 years you're referring to is if parents receive an inheritance (not gift) from a child where that child has received a non-exempt gift / inheritance from either parent. In your case it's a gift, and the original gift to you was exempt.