Inheritance tax

[How bad boy]

I genuinely dont care what you think about this subject tbh. Youre only talking complete crap. As usual


Banging on about income tax and hypothetical bidding situations has jackshit to do with Irelands artificially high rates of inheritance tax and the hopelessly out of date tax free thresholds.


It needs to be adressed. Theyve had two terms to do this and only start with fuzzy lip service as theres an election imminent

It's in no way hypothetical.

You're whining about a tax that hit only 12k people in 2021.

Who is going to pay higher taxes to compensate for your desire to give those few thousand people even more money? Maybe charge the poories a little more income tax?


It is a trade off. You're ignoring entirely one side of that tradeoff.

 

[How bad boy]

Lol, more shite about income tax and hypothetical bidding wars being impacted by inheritance.

Not worth seriously replying to. Always the worst take in the room

Devastating counter argument that.

 

[Browser Brody]

Got left 20k in a will. Thats under the threshold to pay tax on isnt it ? I still need to declare it dont i ?

 

[outdagap]

The tax rate or the threshold?

As a left wing party, keen on taxing wealth, you'd think the former.

As a party that loves to promise whatever voters want to hear, he may mean the latter!!

I think SF's latest iteration is to slightly increase the threshold by 30k IIRC and increase the tax from 33 to 36%. Their long standing policy before this, was to reduce the Inheritance tax threshold to zero so you'd pay inheritance tax on the full amount. So likely this change was brought in to not completely scare off those middle income young people they've been trying to attract with their housing nuggets.

 

[outdagap]

Got left 20k in a will. Thats under the threshold to pay tax on isnt it ? I still need to declare it dont i ?

Yes I think you do need to declare it...who did you inherit it from? A parent, grand parent or friend type ?

 

[outdagap]

 

[Jim Comic]

got this off de accountant...

 

[Bennyton]

I know - just replying to Bennyton's post about how threshold works!

Appreciate it m8.

I've got nothing to worry about in that regard though.

If I wanted to sell my €1m gaff to my child, at mates rates. before I get dementia, would I be in shit then too?

 

[Bennyton]

In relative terms if property inflation is not taken into account then the tax increases year by year.

For example if you died 10 yrs ago when your house was at the threshold 330K then your kid could have sold up and bought the house next door, if instead you die today and your house price has doubled in value he can't buy the house next door (which has also doubled) as he will be short roughly a 100K which he has forked out in inheritance tax.

Instead of arguing about the merits of it as a tax versus other taxes I would argue about the merits of it being a tax in the first place. The person who died has paid tax of their earnings, obviously the benefactors haven't but there are other ways to transfer this wealth to avoid taxation so why should the unsavvy be punished?

Say the person who died has also inherited a vast estate, and vast fortune, should they be allowed to hand all that down to their offspring without paying tax on it?

I think the thresholds should be quite high, I don't think the people paying this should be your average joe soap, but you also shouldn't be able to hand it down ten generations untaxed.

The thing about tax is, capital is mobile, but wealth isn't, so you tax wealth and have less flight of capital, whereby most people benefit.

 

[Rebel CNC]

Appreciate it m8.

I've got nothing to worry about in that regard though.

If I wanted to sell my €1m gaff to my child, at mates rates. before I get dementia, would I be in shit then too?

Yeah - Revenue would assess the difference between value of house and amount paid as a gift!

Possible way around it - if your child lives with you in the €1m gaff for three years before you cut the mortal coil and he/she continues to live there for few years afterwards, he/she will be in the clear!! Property taken out of inheritance tax net in this situation.

Need to plan ahead though - child would have to prove he/she lived there - bank statements going to that address, etc