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ludovico
Apprentice
Joined: 19 Oct 2005
Posts: 2
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 Posted: 12/30/07 - 09:31 Post subject: |
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| I have recently decided to buy a house. I would like to buy it from my parents. However, if there is any way, I would like them not to have to pay CGT after the transaction. If anyone could give me any information, that would be great. Thanks in advance. |
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humbert
Apprentice
Joined: 20 May 2005
Posts: 8
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| Posted: 01/29/08 - 01:04 Post subject: |
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| Generally speaking, if your parents own a property that is worth less than 500,000$, they will not have to pay any tax for selling it to you. CGT, or capital gains tax works really with significant incomes, so if their house is not as valuable as I have stated, they will be exempt. However, they could manage to avoid CGT altogether, if they do not need the money (and you could arrange that in some other way), they could make a gift to you, as that gift is between family members. In that case there will be no tax whatsoever, even though the limit of value to which you can get a gift without taxing, will naturally decrease. I hope you find this helpful. |
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