Gifting €2m to your family tax free. At first glance, this seems impossible and/or undesirable but with smart planning it is possible to avoid all tax burdens on such a gift, legally and legitimately.
In Ireland, the tax landscape, especially concerning wealth transfer, can be a bit like navigating a maze. The culprit? Capital Acquisitions Tax (CAT), with a hefty 33% rate for gifts and inheritances. This is what we are now conditioned to, but it is frustrating when you see that in the USA for example there is no federal inheritance tax! And while there is a federal estate tax, it only applies to assets over $13m, and the bands start at 18% above that level!
But here's the good news for Irish residents. There are legal loopholes, and we're about to spill the beans on the ones that can work wonders for many of us.
I recently came across a wonderful infographic showing 20 mistakes that investors make, and which they should try to avoid. It reminded me that sometimes we in the investing world talk down to retail investors, many of whom are way smarter than those actually in the investment world!
It also reminded me of a parenting tip I got once. That was to always encourage a child to do something in a certain way, as opposed to telling them what not to do!
So, instead of saying 'Don't bloody drop that glass', encourage them by asking them 'show me how well and how carefully you can carry that glass over to the table'! The positive impact and chances of success are apparently far higher by doing the latter.
In an attempt to increase your chances of investment success, here are 20 things (yes, just 20!) that I encourage Irish investors to try and do with their long term investing.
When it comes to leaving a PAYE job or winding-up your own company, there are various types of payments you might receive, or give yourself!
But what about the tax implications of these payments? In Ireland, the tax treatment of payments on cessation of employment can seem like pie in the sky for many people – I'm here to clear the air for you!
I hope it helps.