3k annual tax free gift exemption

stevieob

Registered User
Messages
39
hoping someone can please clarify

wifes parents giving us a few bob to get house done up.

can her dad gift her 3k and can her mother also gift her another 3k without being taxable? i think this is ok.

go one step further

can they both then gift me 3k each? don't see why not :)... ain't going to happen, but sure wishful thinking and all, just curious to know the correct answer

lastly, would they all have to be separate transactions?.... i think not

many thanks
 
Yes, your wife can receive 3k from her dad and 3k from her mother.
Yes they can also gift you 3k each. You as the receiver can avail of 3k as a gift from anyone.
The technical lingo is "the first €3,000 per annum in gifts made by any one disponer (giver) to any one donee (receiver) is exempt from CAT.
 
yes u, as a couple, can get 12k per annum form the wife parents.
Best to keep the paperwork transparent to show u are availing of the small gift allowance: usually for a long term plan you would use a bank transfer.
However be certain that the source is transparent as well: lots of folk have tripped up here
 
In relation to these "small gift exemptions", must they be declared to Revenue by the receiver? Is their a special form for this? Or is it only necessary to declare
when reaching 80% of the inheritance threshold (eg in the case of a son or daughter)?
 
My husband and myself loaned our son 10,000 euro in 2014. When it came to repaying it in 2015 I suggested he keep it as he was saving for a house. As he hasn't found a suitable house yet I am now wondering what the tax implications are for him on this money if any. Would it be better if he returned 4000 euro and kept 6000 for a small gift from parents in 2014 and then we gifted the 4000 he returned in 2016 or does it really matter.
 
Gordon, What difference effectively does it make if he just kept the 4000 extra. Does he need to declare it to revenue now or when if ever he receives an inheritance
 
It depends on whether he will inherit more than €280k from you down the line.

If he won't, it's a moot point. But if he will, that €4,000 will cost €1,333 down the line, unless you use the Small Gift Exemption to eliminate it.
 
Further to the above questions, we would like to set up a regular annual gift (under the 3k max) to each of our children to avail of the gift tax exemption. One is still a minor, the other is 18. My understanding is that for it be seen truly as a gift we should no longer have control over this money after it has been gifted. However when looking at bank accounts etc for the minor I think we would still be considered to have some control over this. We also looked at share accounts, but again minors cannot hold these in their own name, so we might still be deemed to be in control of the funds.

Can anyone recommend how best we should set up this annual gift (for both the minor and the 18 yr old) so that we don't run into problems with gift tax down the line and yet hopefully still get some return on the money. If possible, we would prefer not to involve the kids in the setup as we would like them remain unaware of this gift until (much) later down the line so the money is not squandered in the college bar!!
 
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