Property dealings within families are not that uncommon in Ireland but it is important to be aware of the tax rules that can apply
We’re being evicted but Mum is offering to sell us her house at a discount - what are the tax rules?Brown Thomas defends decision to charge customers 60 cent for paper bags
The other issue is that the steely-eyed focus on leaving something to relatives can often mean that, even for those fortunate enough to have that sort of money or assets available, the notion of making it available to those same relatives earlier in life when it can really make a difference to them is never considered.
Your mother is of a mind to sell you her home, which will certainly address your need. That brings us to the 25 per cent “inheritance discount”. There is also the possibility that the selling price will be below market value, you say.Let’s start with the concept of the sale below market price. There is nothing to stop your mother doing that: however, any difference between the price you pay and the market value will be considered as a gift by the Revenue Commissioners.
This could be important to you – depending on whether you have already received an inheritance from your father or the below-market value of your mother’s home being in excess of the €335,000. The threshold that applies is the one in place at the time the transfer happens so you will not get the benefit of any increase to €400,000 – if it happens – except on gifts or inheritances taken after it comes into force.
It would be important that this sale is to you, not to you and your wife as her ability to benefit from your mother’s largesse is much more limited – a lifetime threshold of €16,250. Once acquired, there is nothing stopping you from then putting the property into the joint names of yourself and your wife.
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