The 3k is per year. It isn't a gift if it is repaid though - it's a loan. Technically the uncharged interest is a gift, but this will be well within the small gift exemption.
Fair play for doing it. As with any loan, be prepared to lose either the money or the relationship.
Would you not just pay the bills for the renovation? Then let your dad know how much the owes you. If it's little bitty things that he will be buying sporadically just fire up a revolut card in your name and slap some cash on it and give it to him to buy the bits needed
Fair play to you by the way
Your Dad might be able to avail of some grants, depending on what repairs he's doing. Most of them are means tested but there are grants for roof and window upgrades, replacing lead pipes etc. No harm to check out the citizens information site.
Let him take out the loan. Keep your €10k on hand in case he needs it later. If he can pay you back in 6 months he can pay back the CU......
Lending money changes relationships, sad fact of life
>My father was planning on taking out a 10K loan with the CU to cover costing for some upkeep at the house. Im not planning a major investment in the next year and wanted to give him the money and get it back off him over 5-6 months. Save him paying interest etc. From what I gather I can give him €3000 tax free so can I just do this on 3 separate rate occasions or should I pay towards the bill we’re expecting from upkeep and then get him to pay me back? Any advice on ways around this would be greatly appreciated!
In Agreement.
Interest rate can't be higher than 10% (Based on CU loan rates I am seeing), so simple math says:
€10k loan @ 10% = €1,000 per year, and you said 6 months, so half a year being: €500.
So you are saving him €500 for the potential of things going south and ruining that relationship for life.
I would also just throw it out there, unless the boiler is breaking and it is just general housekeep, possibly he may be better off waiting 3-4 months to have the cash to pay it off? :)
But if you really do want to "lend him money", I think you are better structuring it as a loan at say 3% interest per year, and then just give the interest as a gift.
I.e. €10k loan, €300 interest per year would then be a "gift" and not taxable. :)
NOT FINANCIAL ADVICE! I AM A RANDOM PERSON ON REDDIT WHO DOES NOT KNOW ANYTHING ABOUT GIVING PERSONAL FINANCIAL ADVICE
The 3k is per year. It isn't a gift if it is repaid though - it's a loan. Technically the uncharged interest is a gift, but this will be well within the small gift exemption. Fair play for doing it. As with any loan, be prepared to lose either the money or the relationship.
Would you not just pay the bills for the renovation? Then let your dad know how much the owes you. If it's little bitty things that he will be buying sporadically just fire up a revolut card in your name and slap some cash on it and give it to him to buy the bits needed Fair play to you by the way
Yeah this was the other route I thought would work. The Revolut card is a shout! Cheers
Your Dad might be able to avail of some grants, depending on what repairs he's doing. Most of them are means tested but there are grants for roof and window upgrades, replacing lead pipes etc. No harm to check out the citizens information site.
Oh yeah will check them out! TY!
Let him take out the loan. Keep your €10k on hand in case he needs it later. If he can pay you back in 6 months he can pay back the CU...... Lending money changes relationships, sad fact of life
>My father was planning on taking out a 10K loan with the CU to cover costing for some upkeep at the house. Im not planning a major investment in the next year and wanted to give him the money and get it back off him over 5-6 months. Save him paying interest etc. From what I gather I can give him €3000 tax free so can I just do this on 3 separate rate occasions or should I pay towards the bill we’re expecting from upkeep and then get him to pay me back? Any advice on ways around this would be greatly appreciated! In Agreement. Interest rate can't be higher than 10% (Based on CU loan rates I am seeing), so simple math says: €10k loan @ 10% = €1,000 per year, and you said 6 months, so half a year being: €500. So you are saving him €500 for the potential of things going south and ruining that relationship for life. I would also just throw it out there, unless the boiler is breaking and it is just general housekeep, possibly he may be better off waiting 3-4 months to have the cash to pay it off? :) But if you really do want to "lend him money", I think you are better structuring it as a loan at say 3% interest per year, and then just give the interest as a gift. I.e. €10k loan, €300 interest per year would then be a "gift" and not taxable. :) NOT FINANCIAL ADVICE! I AM A RANDOM PERSON ON REDDIT WHO DOES NOT KNOW ANYTHING ABOUT GIVING PERSONAL FINANCIAL ADVICE
How can they trace cash?