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  1. #1
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    Default How much cash can you gift without tax implications?

    As the title says...does anyone know how much cash you can gift someone without tax implications? And is is per person in a couple say Dad gives Daughter x amount then Mun gives daughter x amount.

    I have tried googling and looking on ATO and cannot find the answer

    TIA

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    A one off 20k

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    Per person in a marriage? And one off do you mean not once a year? Thankyou

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    Per couple
    Just once not once a year

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    Thankyou

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    You need to get accounting advice.

    I am not an accountant, but my understanding is -

    Tax is only payable on income.

    So, if I gifted my brother, say, $50,000 that was sitting in my bank account, then there would be no tax payable on that gift.

    However, once it is his, then he would pay income tax on any income it generates.

    If I was receiving an asset-tested Centrelink payment, then they would still deem some of that amount as my assets for 5 years even though I no longer have the money.

    Also, if he was under 18, then any income generated from the gift amount would attract higher tax rates.

    That is why individual advice is important.

    You would also consider whether you need to document the gift properly. If it was done informally, and the person who gave the gift dies, then the estate might try and claim it was a loan and claw it back.
    Last edited by MsMummy; 10-12-2013 at 18:26.

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    Agree with msmummy.

    You can gift away any amount you want, but tax implications may arise for person who has received the gift (as any income is taxable).

    The person gifting the money may also have centrelink issues if they gift large amounts of money i.e. you can gift $10,000 per financial year but not more than $30,000 over 5 years. If this is exceeded then the excess amount will be counted as a financial asset for next 5 years.

    I had clients who gifted sale proceeds from a house to their daughter. There were no tax implications for them only Centrelink issues.

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    Last edited by Night Owl; 09-12-2013 at 00:00.

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    There is no Centrelink payments involved for either party. It would be sale of the proceeds of a house getting paid onto someone else's mortgage (about 65k).

    I always thought there was some kind of `gift tax' where the person gifting the money got taxed on it.

    I do need to go and see an accountant.....just trying to get some free advice to see if it is possible before forking out for an accountant!

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    Given the amount involved, the recipient should see a solicitor for advice and formalise it by a deed to avoid later conflict.

    The person gifting should get independent advice on the implications.

    There is no gift tax or death tax as such in Australia, but some gifts can trigger tax, eg. if someone gifts their investment property, then capital gains tax may be payable on the transfer.

    Advice can seem expensive, but it can avoid a lot of problems down the track.

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    BH-KatiesMum  (10-12-2013),NoteToSelf  (10-12-2013)


 

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