3K gift tax free

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misstealeaf

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Sorry posted this in the tax thread but i think it should actually be in here.

In 2013 my Dad gave myself and my husband 15000 to go towards the deposit on our house, my mam also gave us 10000. I know that the first 3K of any gift from one person to another is tax free so I am calculating that the taxable value of this gift would be 13K all in given that 3 from my dad to me and my husband is exempt and the same for my mam. the 25K all went into my bank account however just for ease at the time so each parent only had to make 1 transfer. is this ok? thanks
 
Have a look at the gift thresholds in the link below.

Assuming you have not exceeded these then no tax is due.

http://www.revenue.ie/en/tax/cat/thresholds.html

You must make a tax return if the total value of gifts and inheritances you have received in one of the groups, A, B or C, since 5 December 1991 is more than 80% of the tax-free threshold for that group.

If the total amount is <80% then simply make a note of the gift as no action is required on yor part at this point in time.
 
Infoseeker I should have clarified. I have exceeded the threshold due to an inheritance so for he purposes of previous gifts received I was going to say that the previous taxable value was 13K as outlined above even though the full amount went into my account it was used to buy a house with my husband and the intention of my parents was that it was a gift to both of us so that's why i am deducting off 2 3K's for my husbands gift from my parents.

Would this be ok do you think?
 
Just when on the subject of the 3k tax free gift allowance

Could a son or daughter receive 3k from their mother and 3k from their father in the one year tax free?

ie received 6,000 in one year tax free?
 
misstealeaf said:
Infoseeker I should have clarified. I have exceeded the threshold due to an inheritance so for he purposes of previous gifts received I was going to say that the previous taxable value was 13K as outlined above even though the full amount went into my account it was used to buy a house with my husband and the intention of my parents was that it was a gift to both of us so that's why i am deducting off 2 3K's for my husbands gift from my parents.

Would this be ok do you think?
Click to expand...

An inheritance from who?

Audi Driver, yes...a person can give another person €3k per year, so yes - €6k per couple. It just needs to be clear that it's from both (so either €3k clearly from each or €6k from their joint a/c).
 
Gordon Gekko said:
An inheritance from who?

Audi Driver, yes...a person can give another person €3k per year, so yes - €6k per couple. It just needs to be clear that it's from both (so either €3k clearly from each or €6k from their joint a/c).
Click to expand...

Gordon,

Many thanks for that.
 
Hi Gordon,

I just have another question on the 3,000 tax free gift allowance.

Could a brother gift a brother €3,000 in a year tax free ?

I am aware there is a 30,000 life time limit tax free allowance.
 
This is what it says on the revenue page. This suggests to me that a person can only receive one gift of €3k tax free?

  • the first €3,000 of all gifts taken by a donee from one disponer in any calendar year
 
Grizzly said:
This is what it says on the revenue page. This suggests to me that a person can only receive one gift of €3k tax free?

  • the first €3,000 of all gifts taken by a donee from one disponer in any calendar year
Click to expand...

Nope...it says that the first €3k of gifts received by one person from one person is tax free.

I could receive 100 gifts of €3k from 100 different people and that would be fine.
 
From Revenue.ie , Gift tax-CAT1

Are there any exemptions from Gift Tax?
Yes. The main exemptions are -
the first €3,000 of all gifts taken by a donee from ONE disponer in any calendar year.

(Donee- receives the gift and the disponer gives the gift)

So a person may receive an unlimited number of gifts tax free if they do not exceed exceed €3,000.
 
I am seriously considering giving my Sister €3,000 each year tax free rather than waiting until I die which hopefully will be a long time from now.

Do I have to return any paper work to the revenue or can I just start this year and give my sister €3,000 and then €3,000 in 2016,2017 etc. and stop a year and continue the next if i want?
 
theresa1 said:
I am seriously considering giving my Sister €3,000 each year tax free rather than waiting until I die which hopefully will be a long time from now.

Do I have to return any paper work to the revenue or can I just start this year and give my sister €3,000 and then €3,000 in 2016,2017 etc. and stop a year and continue the next if i want?
Click to expand...

Absolutely, yes. No return required.
 
When calculating one's liftetime aggregate of Group A gifts, is the first €3000 in each calender year, included or not?
e.g.if a son was gifted €3000 in 2013, €3000 in 2014 and €225,000 in 2015, would the son's CAT Group A aggregate now be €222,000 or would it be €231,000?
 
The first €3,000 of gifts for each individual per annum is exempt. Therefore €225,000 is not affected by €3,000 from each individual.
 
So the OP is receiving a gift from her parents but so is her husband. Can the husband receive any tax free gift, so reducing the overall tax bill?
 
Kimmagegirl said:
So the OP is receiving a gift from her parents but so is her husband. Can the husband receive any tax free gift, so reducing the overall tax bill?
Click to expand...
Yes, that's the whole point of her question!
They received 25k, and she was asking if her figure of 13k (after deducting 3kx2 for her and 3kx2 for husband) is correct.
 
I rang Revenue today with my question above, and the answer is that the first €3k from any one disponer to one disponee, in a calander year, does not count towards the lifetime group aggregate of the disponee. So in my example, the son's lifetime Group A aggregate by the end of 2015 would be €222,000.
 
ricta said:
I rang Revenue today with my question above, and the answer is that the first €3k from any one disponer to one disponee, in a calander year, does not count towards the lifetime group aggregate of the disponee. So in my example, the son's lifetime Group A aggregate by the end of 2015 would be €222,000.
Click to expand...

It'd probably be €219,000 as the gift would typically be from two parents (so €225,000 less €6,000).
 
ricta said:
I rang Revenue today with my question above, and the answer is that the first €3k from any one disponer to one disponee, in a calander year, does not count towards the lifetime group aggregate of the disponee. So in my example, the son's lifetime Group A aggregate by the end of 2015 would be €222,000.
Click to expand...

It'd probably be €219,000 as the gift would typically be from two parents (so €225,000 less €6,000).
 
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